ICOs are the modern method of fundraising by surpassing regulation and interventions of authorities. At one hand it is a less complex and more profitable method but at the same time, it makes it a riskier prospect.
People reading this written composition must be familiar with the term Initial Public Offering (IPO) in a traditional stock market. For those who do not know what IPO is, then it is a method of fundraising when a private LLC goes public (generally for business expansion).
They allow people to invest in their company against equal value stakes in the company for better returns in the future. ICO too works in the same manner but in a way less complex manner.
By and large, putting investing in ICOs is an agreement of mutual benefit where giver (the investor) and the receiver (the business) both make profits. To start a venture the people, need money and this shortcoming is bridged with the money seeped in by ICO’s. The investor in return has good chances to make decent profits in medium to long term. So, it’s a mutual benefit deal.
Frequently Asked Question About ICO
What is ICO?
ICO which stands for Initial Coin Offering. It is similar in IPO but with a pinch of cryptocurrency. Instead of shares the digital stakes named as coins/tokens are generated and sold in different phases like Pre-ICO, Private Sale etc.
Why Should I Invest in ICO?
To make money and sometimes to make abnormal profits.
What are some Popular ICOs in the past?
Our very own Ethereum was once an ICO and today everybody knows its position in the market. ETH was launched at a price of 30 cents in 2013 and in 2017 end it crossed 1500$ mark. Now do the math yourself. Some other popular ICO’s are NEO, XSPEC, IOTA, WAVES etc.
How to Invest in ICOs?
The coins which are backed by a project, are made open for public in multiple phases to invest. Investors are mostly asked to buy the tokens/coins against Bitcoin or Ethereum. The most common mode of investments is in terms of Ethereum (ETH) as the majority of the tokens are developed on the ERC20 platform of Ethereum.
Are the ICO’s always Profitable?
No. In fact, in the past, a lot of the ICOs exit scammed and duped money of people.
Is it safe to Invest in ICO’s?
To be honest, it is a risky prospect. For-profit and loss both, only the investor will be responsible. Though by putting decent research you can minimize this risk.
How to find a legit ICO?
By doing serious research and digging deep for details like the people behind, the project, what product is it bringing before the world etc.
Blockchain believer advises you to never make haste. Before investing take time to put your efforts in order to properly digging in the truth behind. Reviews of various independent websites can be helpful here.