Taking part in an IDO, the risks

2 min readApr 4, 2023

The following is not investment advice. However, you are our community and we want you to go into an IDO being aware of the risks and understanding the importance of research. We strongly recommend you read the following in full prior to taking part in any IDO

High risk

There is an inherent risk in all investments and this is significantly higher in the crypto space. Although the returns when investing in an early stage project can be high, the risk of this type of investment is also high, especially during periods of significant market volatility.

We do our own due diligence into all projects that do an IDO with us, this includes checking their team, tokenomics, white paper and asking our advisors for their view on project viability.

However, our due diligence is by no means exhaustive and certainly does not mean that the project will be a guarenteed success. There are many factors at play for a project to be successful and you should never invest just on the back of our due diligence.

Do your own research

If you are participating in an IDO, we ask that you do your own due diligence into a project. This could include reviewing all their documentation on their official site, joining their community and asking relevant questions, paying close attention to their tokenomics etc.

You should only ever invest in a project when you feel comfortable, when you have done the research and done your own due diligence. Any investment you make is your decision and you should always keep in mind that you could make a significant loss.

We will always do everything we can to ensure the projects that IDO with us are strong and credible. But, you should never take part in an IDO simply because they are on our platform.

Remember, always do your own research and due diligence and always understand the risk associated with investing.




Sphere is a multichain community first IDO platform — empowering launchpad projects to raise liquidity in a fair & decentralized manner.