What are the risks of crowdfunding for investors?
Crowdfunding can be risky for investors due to factors like project failure, lack of regulation, and illiquidity.
Can you explain what project failure means in this context?
Project failure refers to the inability of a funded project to deliver on its promises, leading to potential loss of investment.
What about the lack of regulation? How does that affect investors?
The lack of regulation means less oversight, increasing the risk of fraud and making it harder for investors to seek recourse.
Are there any ways to mitigate these risks?
Investors can mitigate risks by conducting thorough research, diversifying their investments, and only investing what they can afford to lose.
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