What Is the Risk of an ICO Team Using Pseudonyms or Remaining Anonymous?
The primary risk is the lack of accountability and difficulty in performing due diligence on the team's professional background and experience. An anonymous team can easily abandon the project without facing legal or reputational consequences, leading to a potential scam or project failure.
This anonymity significantly increases the risk of a "rug pull" or fraud. While some privacy-focused projects may justify it, investors should be highly skeptical of fully anonymous teams, especially in complex financial projects.
It prevents investors from verifying expertise and past performance.
Glossar
Lack of Accountability
Oversight ⎊ Lack of accountability within cryptocurrency, options trading, and financial derivatives frequently stems from insufficient regulatory oversight, creating environments where systemic risk accumulates without adequate preventative measures.
Due Diligence
Assessment ⎊ Due diligence within cryptocurrency, options trading, and financial derivatives necessitates a rigorous evaluation of underlying technological infrastructure, regulatory compliance frameworks, and counterparty risk profiles.