Investing in Initial Coin Offerings (ICOs) carries high risks. While it may offer high returns if successful, there is also the potential for total loss of capital. The main risks include:

• No Guarantee of Returns – Although the ICO Portal and the SEC help screen projects and disclose information, there is no guarantee of the project's success or any returns, except for investments in Investment Tokens backed by real estate or income streams from real estate (Real Estate-backed ICO) and digital tokens backed by infrastructure projects or income streams from infrastructure (Infra-backed ICO).
• Lack of Legal Protection for Foreign Investments – If investing in an ICO issued by a foreign company or individual not authorized by the SEC, legal protection under Thai law will not apply.
• Low Liquidity and Difficulty in Trading – If the token has no secondary market or is not popular, it may be difficult to sell and lack liquidity.
• Unlicensed Operators – It is important to verify that the ICO being invested in is offered by a legally authorized party to avoid fraud.
• Cybersecurity Risks – Although licensed digital asset exchanges implement security measures, there is still the risk of being hacked, potentially resulting in asset loss.
• Price Volatility – The price of digital tokens can fluctuate rapidly, posing high risks due to market volatility.
• No Ownership Rights in the Company – Investors in ICOs receive rights defined by the issuer, such as discounts or platform access, but do not gain ownership in the company or rights to dividends.
• High Risk, High Return – ICOs can offer high returns but come with high risks. Be cautious of offers that seem too good to be true, as they may be schemes to attract investors.

Recommendations Before Investing

• Thoroughly research the ICO project.
• Verify whether the project is authorized by the SEC
• Invest in a proportion that matches your risk tolerance and avoid investing all your funds.
• Be cautious of investing in ICOs with unclear information or promises of unrealistic high returns.