Initial Coin Offerings – Things to Know Before You Invest

Initial Coin Offerings - Things to Know Before You Invest

In the crypto-currency space that is engulfing the world economics ICO is the latest craze that can be seen amongst investors. It is a brainchild of the Ethereum team and is a means of drawing funds. Investors can use this methodology for funding projects and other developmental works.

It also offers tokens to blockchain members and it can be expected that they will be harvesting more price than they spent for having them. There are certain considerations that you need to make before you jump in to invest in such fundraising process. Let us have a look at such considerations.

Initial Coin Offerings - Things to Know Before You Invest

Look for the project that is funded
When you wish to invest in such funds it is prudent that you have a look at the core features of a project which helps you to differentiate it from other unscrupulous projects.

You should always avoid investing in ICO which has some similarities to an existing project. These types of ICOs try to rule the world standing on the achievements of other established projects. So select those which have an innovative and noble use so that they receive the desired attention.

Look for bonuses that are in the offering
When you are investigating such a means of investment means you must ascertain the nature of bonus that you can have. The nature of bonus may vary from project to project and you must select one which offers a lucrative bonus for early investors. There may be offers which may give you 10% bonus as a token for investors until a milestone of 1000 ETH is reached. This means that you will be receiving 11000 coins in place of 10000 coins.

Escrow and refunds
You must have a look at the escrow service handler before you try to invest in any nature of ICO. You must have a look at the reputation of such escrow service handler so that they do not run away with the funds that are collected.

Credibility of developers
Credibility of the developers should also be one of your considerations before you invest in such nature of ICOs. If you see that the development team is public then you can be certain that you will find someone who can be held responsible for any nature of mishaps.

Keep these considerations in mind before you invest in any ICO so that you get the best of return on investment.

Leave a Reply