Despite the overwhelming success of The DAO so far, a lot of people are still unable to wrap their head around the concept. However, the project has attracted thousands of investors around the world, which is a feat that should not be ignored. But does the idea make enough sense to every investor to justify the involvement?
Making Sense of The DAO As An Investor
One of the more prominent risks of crowdfunding is how companies and projects will attract funds from people who have no idea of what they are investing in. The DAO seems to be one of those concepts, as it is incredibly difficult to explain to less tech-savvy users, and the legality of this business model remains a gray area for the time being.
While nearly every investor is confident the code behind The DAO alone is well worth the investment, that alone should not be the main reason to participate in this crowdsale. Keeping in mind how this project will invest the collected funds into other startups, the world of investing will be turned on its head. All of this relies on voting participation, though, which effectively requires some form of trust in other investors to make