Initial Coin Offerings (ICOs) and Key Opinion Leader (KOL) Rounds Risks - The industry observes that teams may view investors as exit liquidity, potentially leading to scams [1] - The industry highlights the risk of significant losses, citing an example where a token's value dropped by 95% shortly after launch [2] - The industry notes the potential for ICOs to mirror the negative outcomes seen in KOL rounds [2] Past Experiences and Lessons Learned - Early successes in KOL rounds led to widespread FOMO (Fear Of Missing Out) into unproven projects [3] - The industry experienced substantial financial losses in KOL rounds due to delays, rug pulls, or project abandonment, with losses reaching high five-figures [3] Due Diligence and Caution - The industry emphasizes the importance of caution and thorough due diligence when dealing with founders, especially anonymous ones [2] - The industry advises investors to be wary of deals, even from individuals with whom they have long-standing relationships [2]