Initial Coin Offering is shortened as ICO. This is the system where any person grants some units to the investors of a new cryptocurrency or crypto-token in exchange against cryptocurrencies like Bitcoin or Ethereum or Ripple or other cryptocurrencies. Nowadays, ICO is employed to fund the advancement of new cryptocurrencies. Initial Coin Offering (ICO) is sometimes also called as the Initial Public Coin Offering (IPCO).
With the success of Ethereum ICO are gradually used to back the development of a crypto project by publishing token which is anyhow integrated into the project. ICO has shifted as a tool that could transform not just currency but the whole economic system as well. ICO token could enhance the securities and shares of your tomorrow as well. Sometimes, Initial Coin Offering (ICO) is also known as a mechanism of fundraising in which new projects sell their underlying crypto tokens in trade for the early property. There are two types of ICO such as – Crypto Coins and Crypto Tokens.
Common ICO Investment
ICO creates new cryptos, where already thousands of cryptos available. There are only so many crypto users who use this system to invest his/her money. ICOs are a bit like IPOs (Initial Public Offering) for ‘Penny’ stocks. There have been some shady ICOs. Each ICO is not as upright as the next that’s why is hard to tell which is which though.
The blend of any coin and wallet demands a given ICO. This is due to the ICOs those are token-based systems that are built on the Ethereum blockchain. There are many investors those are actually exchanging ‘ether tokens’ for rebranded ‘ether tokens’ with unusual mechanics that’s why in many cases, you need Ethereum particularly.
In the last year, ‘Financial Conduct Authority’ issued a warning over the use of ICOs where it stated that they are “very high-risk, contemplative investments” and it also said that one should only invest in an ICO plan only you are well-prepared to lose you money.
The cost of a token is unsafe to severe cost volatility and market manipulation as the market price is largely driven by speculation on the secondary markets. There is also usually quite limited publically available information that could help an investor in determining the common value of the tokens.
ICO projects are typically in very early stages of development making them uncertain investments. Most of the companies raising money through ICOs are start-ups those may generally lack strong governance that’s why there is a real risk of mismanagement after receiving large amounts of money in a short space of time.
These tokens do not typically give the investor any stake or choosing rights in the company that’s why the investors are simply betting that the value of the tokens will develop over time. You pay for a whitepaper, there is no source and no guarantee there ever will be. If the developers will try to create the currency then they might fail, either by not being capable to generate the actual currency or by not being capable to live up to expectations.
Manage the ICO Tokens with Cryptocurrencies
Though there are many hazards in investing the money in cryptocurrencies. So here we going to give you the solution to set up, run and manage the ICOs in few simple steps by which you can focus on that what you should be taken care of:
- You should develop your own smart contract tokens by forming a proper model that fits for each case. Due to the risky nature of launchings, it is better for the investor to skip the ICO and wait until the token/cryptocurrency is launched and listed on an exchange or two before buying it.
- Read all the information on the project’s website by checking out the team and the advisors, and also read up on their backgrounds. Always check out the social channels of the projects and blogs as well that they updated frequently or not and also that they run professionally or not.
- Always invest in top ICO invest platforms and also read the whitepaper of the project which may be some technical sometimes that’s why you should find an expert for its evaluation which will help you drastically in investing.
- Some coins are pinned shortly so you may miss out of this. However, most ICO-based coins miss value or remain steady for months before anything significant happens. It is also rare that an ICO is too good to pass up it.
Though investing in ICO sometimes is hazardous but most of the time it is beneficial for its investors or firms. So, always consider the risks versus the reward. If it seems too good to be true, it probably is. Risk/Reward-ratio is a very commonly used investment ‘strategy’ and is worth using in any sector of your life.
By the current emerging solutions and platforms, you can’t only advance your own Initial Coin Offering and manage it easily and safely, but you can also ensure the management of your investment from a central single platform without being burdened by identifying your different addresses and wallets.