What in the world is an ICO?
Not to be confused with an Initial Public Offering(IPO) on the stock market an ICO is an Initial Coin Offering but lets look at the proper definition
DEFINITION of 'Initial Coin Offering (ICO)' An unregulated means by which funds are raised for a new cryptocurrency venture. ... In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
The people who invest in a project like this are certainly brave as not all offerings are successful when they start trading but the rewards can be phenomenal. An example of this is Ethereum it raised $18 million and is worth a lot more than that today so the early investors here really did get in on the ground floor and are now looking down on the rest of us from very lofty heights.
An ICO is a bit like crowdfunding, When you are interested in a particular project in the blockchain, the way you can gain access to it is by sending the developing team some amount of money, which is usually paid in Bitcoin or Ethereum and getting the equivalent amount of tokens in return. So if the ICO is a success then your tokens will bring you a nice return on your intial investment.
If there is a lot of hype around a particular ICO and enough people back it the the chances of success are better but beware there is plenty of risk involved in investing in something like this,do your own research and take advice before jumping in.
Stay on your guard for scammers!
The project developers for an ICO should be able to clearly define the aims of the project. They should not be anonymous and there should be a clear point of contact for them so you can get any information required. There should be a legal frame work between both parties. Make sure The funds for the ICO are stored in an escrow wallet An escrow wallet is basically a multi-sig wallet which needs multiple keys to be opened. One of those keys must be held by a neutral third party.
ICOs give opportunities to promising projects and gives them good exposure to the community and can lead to something big an exciting who wouldnt have wanted to be a part of the Ethereum ICO but alas we cannot go back in time instead lets look to the future and getting involved with an ICO can lead to big things and big rewards.I conclude by saying who knows if this is the future of investing who knows?
Gerry
DEFINITION of 'Initial Coin Offering (ICO)' An unregulated means by which funds are raised for a new cryptocurrency venture. ... In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
BREAKING DOWN 'Initial Coin Offering (ICO)'
When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.The people who invest in a project like this are certainly brave as not all offerings are successful when they start trading but the rewards can be phenomenal. An example of this is Ethereum it raised $18 million and is worth a lot more than that today so the early investors here really did get in on the ground floor and are now looking down on the rest of us from very lofty heights.
An ICO is a bit like crowdfunding, When you are interested in a particular project in the blockchain, the way you can gain access to it is by sending the developing team some amount of money, which is usually paid in Bitcoin or Ethereum and getting the equivalent amount of tokens in return. So if the ICO is a success then your tokens will bring you a nice return on your intial investment.
If there is a lot of hype around a particular ICO and enough people back it the the chances of success are better but beware there is plenty of risk involved in investing in something like this,do your own research and take advice before jumping in.
Stay on your guard for scammers!
The project developers for an ICO should be able to clearly define the aims of the project. They should not be anonymous and there should be a clear point of contact for them so you can get any information required. There should be a legal frame work between both parties. Make sure The funds for the ICO are stored in an escrow wallet An escrow wallet is basically a multi-sig wallet which needs multiple keys to be opened. One of those keys must be held by a neutral third party.
ICOs give opportunities to promising projects and gives them good exposure to the community and can lead to something big an exciting who wouldnt have wanted to be a part of the Ethereum ICO but alas we cannot go back in time instead lets look to the future and getting involved with an ICO can lead to big things and big rewards.I conclude by saying who knows if this is the future of investing who knows?
Gerry
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