Connect with us
[ccpw id="998"]

News

ICOs: Are You Investing Wisely?

Samantha Mitchell

Published

on

ICOs: Are You Investing Wisely

Initial Coin Offerings (ICOs) have certainly been a very popular topic of conversation over the last few months with more and more coming onto the market every minute of the day, well that’s what it feels like. But with the new Blockchain technology available as well as Cryptocurrencies, how on earth are you meant to keep a track of what is going on let alone chose an ICO to put your faith into?

What’s An ICO?

So to set things straight, an ICO is basically the main way for most start up companies to obtain the funds that they need to develop their concept from start to finish. Most of these start up companies that are looking for funds to be raised are those that are using the latest Blockchain technology. For any new idea, it is a great way to not only get the capital that you need for the project but also encourages customer buy in at an early stage. However, quite often there are millions of dollars needing to be raised.

Although recent statistics do show that there are a lot of concerns about ICOs and the number that will fail, there are still a few good ones out there. So it is very much a case of finding the needle in the haystack.

What’s An ICO

A Few Tips

Some in the industry are very much questioning this new concept and suggesting that companies actually go back to basics and build their product first and then look for investors. Then at least they have some to sell rather than just an idea. At the moment, there are worries that a lot of the ideas that are driving the latest ICOs are either very new and not tested in the marketplace or there is currently no market at all for their offering. Investors are actually putting down money on something which is a vague notion which may or may not be a scam.

However, as highlighted above, there are ICOs which are worth investing in. There are great ICOs out there but you do need to do your research. Indicators such as excellent experience from the founders and team working on the event, regular updates on the project as well as open sourced code provide you with a solid business case. Respected advisors and Cryptocurrency / ICO experience are also positives, as is knowing that people would actually buy the product or service that you are putting your money towards. So all is not doom and gloom, you just need to remove the bad guys before investing in a good one.

And This Year

However, as has been highlighted above, the amount of money needed to support these new ideas is now getting out of hand. As is the number of scam and fraud out there. Regulation may well soon come out to restrict the negativity around ICOs which is certainly much needed and will very gratefully received. So in the meantime, make sure you do your home work just as you would before making any big investment. Good luck out there!

Sharing is caring!

Advertisement BD

Facebook

en English
X
Free Mining Newsletter
We Don't like spam, we will send you only our Mining Cards tests, Mining News and Tricks or Coins to Mine tips!
We respect your privacy.
shares