What is ICO?
ICO is a controversial and unregulated means of crowdfunding and it is a source of funding for the startups and corporate. Let’s understand this in a simple way startups on a cryptocurrency release tokens and the investors buy them through the digital currencies like ether and bitcoins.
Everyone wants to take advantage of ICO but no one wants to see the efforts involved to take the advantage. ICO can be used in a number of activities raising from charitable fundraising to corporate finance to outright fraud. The securities and exchange commission of United States has warned the investors to beware from scammers using the Initial Coin Offering to execute Pump and Dump schemes. In this, a scammer takes the value of the Initial Coin Offering and generates the interest from them and then drive up the value from them.
Benefits of ICO
- When a company raises funds with the help of ICO then it works as a great way to raising fund for the initial projects of the company. It helps the companies and starts ups to earn the initial capital they have spent and start it again to raise the skilled workers.
- As an Individual, you can also avail the profit from the ICO by investing in them but it should be lucrative and reliable. You need be very alert when investing in the ICO because there are so many scams going on recently. Try to get all the information before investing in the ICO. If the company doesn’t reveal its founders and CEO’s when offers, then don’t invest your money there because it could be a scam. Real companies don’t hide anything when they offer the ICO.
- An Absence of an Escrow wallet is a danger for you if there is no source to get the profit then this is the alert for you to don’t invest your money. You must look for services that come with an Escrow wallet because it is safe to use. When you are ready to invest then search for the latest ico release date on the official websites it will give you an idea when the company is open to offering an ICO and you can prepare yourself for investing in that.
- Try to get the information of where you are investing such as contact number, address, work in progress it shows the authenticity and reliability of company if there is anything missing there then try to stay from the same.
How to find the right ICO campaign?
- Check the background of the Company
- The Number of employees.
- Product development cycle.
- Offerings are issued by the given deadline.
- Transparency, authenticity, and reliability.
- Contact number, Address, work in progress etc.
Once you get all the information about this you can choose the right ICO for investing. These are the key points which you should know before investing anywhere because nowadays there are so many frauds happening nowadays and people are making money with the help of this scam.