ICO is a proven and effective method for kickstarting crypto projects, provided the product is in demand and the team that works on it is good. There are several similarities between the concept of Initial Public Offering and ICO. However, there are several key differences.
There are many possible benefits by participating in the ICO. What is clear is: You help companies launch their products. There is also an opportunity to make profit selling ICO tokens after you buy them. the main purpose of each ICO participant is to help fund a project that they think is interesting. However, there is an additional opportunity to benefit in the process.
You must remember that not all are guaranteed to be profitable. If the ICO campaign may fail and in one case, all contributions will be returned to the sender. Even if successful, there is a possibility that the developer cannot send the final product and the token price will never rise. This is the risk that all ICO participants must take into account when they decide to contribute to any campaign.
It's true that ICO manages to fund so much money, which might be like a honeypot for a lot of scams. I hope that the cryptocurrency culture will change then it would be a healthier growth overall for blockchain project.