Initial Coin Offering (ICO) Explained

ICO’s is the biggest thing since ICO’s they’re very similar to IPOs in initial public offerings in the sense that companies are being created virtually out of thin air out of nothing they’re setting up these companies they’re writing white papers about how they want to build and grow these companies and then they’re launching what’s called an initial coin offering

Initial Coin Offering Explained

Here are a few things you should know before getting into more details about Investing in ICO’s:

An ICO or Initial Coin Offering, also referred to as a “coin sale” or “initial token offering,” is a crowdfunding method for block-chain ventures where a cryptocurrency or asset is sold to early investors before it is advertised on the wider marketplace, such as exchanges.

Before buying tokens it is advised to do extensive research about the project because it is the most important aspect of any ICO. It involves reading the whitepaper, examining whether the ICO provides real-world value and reviewing the team in-depth.

ICO’s are the way to approached companies to raise money to fund the projects that they’re going to be working on that are typically related to blockchain Bitcoin or other you know crypto currencies there’s a lot of different ICO projects that are built on Ethereum platform and so forth so ICO’s are a way that these companies are raising funds and to start building out different platforms based on cryptocurrency technology.

what's an initial coin offering

Now we know what is ICO exactly and why it gets issued in the market. Before going further here are

A few questions to ask ourselves before investing into ICO’s

  1. How to invest in ICO’s
  2. how to pick ICO’s
  3. how to choose the right ICO’s from the wrong ICO’s and
  4. how to choose the winners from the losers

There are more and more ICO’s coming out every day every week every month more than we could keep up with honestly they’re coming out just left and right on multiple websites you can find different ICO listings kind of all over the place and you know it’s hard to keep up with which ICO’s are good and which ICO’s are bad. So, we made a platform for you to check ratings & reviews for ICOs without doing a lot of due diligence a lot of research and understanding what the value proposition of the company it’s hard to pick a nice ICO that you think will go up in value.

Every ICO got their Primary goals –
· Raise capital
· Make their cryptocurrency to be traded in the market.

What do you need to participate in an ICO?

You need to-

  • Own the relevant cryptocurrency that the ICO accepts as investments to participate in an ICO.
  • Make sure that the cryptocurrency wallet from which you are sending the funds is compatible with the ICO token.
  • Triple check the deposit address from official sources. Any mistake will result in a loss of investment.

Before the coin’s Initial Coin Offering (ICO), the company releases a whitepaper that lays out the full details of what the project is all about,
· how much capital they need for the stated investment or product,
· showing what proportion of the overall crypt that the creators or the initial promoters would keep
·for how long the ICO will operate after the completion of the project.

Such white papers, in addition to other literature by corporations, can also be quite broad, often longer than 100 pages. A cryptocurrency company generally publishes other important information about the company, in terms of marketing, leadership and general strategy, in addition to the white papers.

Many people won’t look through all the information provided by a company until they decide on an investment, however, you don’t need all that information anyway.

An ICO achieved the target once it crossed the soft cap. The soft limit is the minimum amount necessary to advance the project. There will also be a hard cap for most ICOs, which is the maximum amount to be approved for investment. If the soft limit is not reached by the ICO, most ICOs will repay investors for funds. However, some ICOs require applicants to provide their details as part of KYC or “Know Your Customer” and white-list procedures, while others are open only to private investors.

ICOs allow the funding of some of the most innovative block-chain projects in the world,

Here are the Key areas of should focus your research on, before investing in an ICO.

  1. The Vision and Mission Statements of the ICO’s – Cryptocurrency is a unique meld of technology and an investment, and a cryptocurrency companies mission statement should clearly outline their coin, their target audience and their competitive advantage.
  2. Real Value in its actual Utility
    Does the cryptocurrency you’re analysing have any value outside of investment value?
    This is important when trying to determine the long-term investment viability of a particular cryptocurrency.
  3. Analyse Competitors – Who are the competitors?
    You wouldn’t start a business without knowing if there is any competition, the same goes for cryptocurrency.
  4. Public Market , Hype – What is all the excitement about?
    Are people excited for the release of this coin?
    This can be extremely helpful in determining the short-term investment viability of coin.
  5. Token Supply Limits and Effects
    In economics, when you increase money supply, things are expected to happen that would affect the economy, like an increase in economic growth, a decrease in unemployment and an increase in inflation.
    You should always know the token supply and how certain actions of cryptocurrency company could affect the value of your asset.
  6. Leadership Board and Advisers
    · Who is in leadership?
    · What value do they bring?
    · Have they been there before?
  7. Go through all the Red flags
    It is very important to be aware of anything that even remotely resembles a red flag. The negative side for lack of regulation is – scams. There are a lot of scams that’s going out their people should be careful about what they are opting for. Not all red flags are deal breakers, but all red flags must be investigated.
  8. Competitive Advantage
    Why would an investor pick this coin as opposed to the thousands of other coins out there?

The Current trend of ICO’s we mean it is exploding it is growing so fast. It’s hard to even keep up with it and you know if this trend is becoming so popular but it’s like how you keep up with this. there are countless examples of ICO’s going from a few cents or you know under a dollar to beyond a dollar within the first week within the first month of launching and you can make some really good money really good profits off of these.

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