Investing in start-up and early stage businesses can be very rewarding, but investing in those businesses involves a number of risks. To invest in businesses through truCrowd, you need to understand the following five important risks:

1. Risk of Loss of Investment

Most startup businesses fail and therefore investing in these businesses may involve significant risk and it is likely you may lose all, or part, of your investment. You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk. If a business you invest in fails, neither the company - nor CryptoLaunch - will pay you back your investment.

2. Liquidity Risks

Liquidity is the ease with which you can sell your securities after you have purchased them. Buying securities (DUSTO) in businesses pitching through CryptoLaunch cannot be sold easily as they are unlikely to be listed on a secondary trading market such as NASDAQ, AMEX or the New York Stock Exchange. In addition, DUSTO has no-voting rights and may not be attractive to potential buyers. Without a public market to find a buyer for these securities it may be more difficult to sell them. Investment in crowdfunding assets should be viewed as a long term and illiquid investment. Current rules state you must generally keep any purchased shares at least twelve months from the acquisition date.

3. Voting Rights and Valuation

The offerings listed on this portal offer DUSTO (Debt Until Security Token Offering) DUSTO do not give you any equity or voting rights in the company.
The DUSTO security is priced arbitrary without any correlation of the company assets, revenues, future cash flows or any valuation method.

4. Future Token is Uncertain

There is no assurance that the Issuer will be successful in releasing a Token or earn sufficient revenue to repay the debt to you.
Also, in the event of a liquidation of the Issuer, your DUSTO might lose all value, causing you to lose your entire investment.

5. Risk of the Need for Investment Diversification

Diversification consists of spreading your money across multiple investments to lessen your investment risk. Unfortunately, while diversifying is a crucial part of investing, it will not reduce every type of risk. You should only invest a portion of your available investment funds through CryptoLaunch and balance your CryptoLaunch investment with safer, more liquid investments. Please note that diversification does not assure a profit or provide a guarantee against investment loss.

6. DUSTO and Future STO Related Risks

By investing is DUSTOs (Debt Until Security Token Offering) the investor has no voting rights and no equity ownership in the company. DUSTO is a promissory note that might convert in security tokens if/when the company will issue security tokens via another security exemption. Interest payments and principal repayment are not guaranteed and there is no assurance that a Security Token Offering (STO) will occur. Tokens offered pursuant to any future STO would be subject to certain risks such as arbitrary pricing and illiquidity, as no market currently exists for the tokens and one may never develop. In the event that a market for the tokens does develop, investors may not be able to sell their tokens at a price equal to or more than what they paid for them, and therefore, investors could lose some or all of their investment.