Risks & Considerations

Important Notice

Internet Capital Markets represent a new and experimental approach to value creation. Participants should carefully consider these risks before engaging with ICM tokens.

1. Perception Risk

Not all tokens are credible. Without standards, ICMs can be misread as unserious. Projects must communicate purpose and function clearly.

2. Regulatory Uncertainty

ICM tokens must avoid looking like securities. No promises, no equity, no dividends. Legal clarity remains a gray area.

3. Over-Financialization

Token dynamics must not distract from product delivery. Tokens should support, not replace, real usage.

4. Market Volatility

Price swings can distort perception. Builders should avoid overhyping launches and clarify their intent.

5. Spam and Low-Effort Projects

ICMs must prevent token spam. Curation, standards, and reputation systems are essential to preserve credibility.

6. Lack of Metrics

Token price isn't enough. Projects should surface usage, activity, and retention alongside token dynamics.

Mitigation Strategies

  • • Clear communication of token purpose and non-security nature
  • • Focus on utility and community value over speculation
  • • Transparent metrics beyond just token price
  • • Strong curation and quality standards
  • • Regular legal review and compliance monitoring
  • • Education of participants about risks and expectations