ICOs have started revolutionizing the world of investment. It is the simple and fastest way to raise funds for the cryptocurrency start-ups. ICOs are open to anyone and you can move your funds quickly to participate in ICO. This also means that projects can raise the funds by the decentralized platform.
The biggest advantage of ICOs is they offer the token sale at very lower rates. Before investing in ICO, please check how to invest in ICO step by step – the complete guide at ico.ask.fm.
Why do companies prefer ICOs?
The companies look for funding for its development which they can perform by private investors, venture capital companies or IPO. The later is available to the company having huge size over billion. On the other hand, with ICOs even the small companies can raise the funds in exchange for cryptocurrencies usually, Bitcoin.
Why are investors interested in ICOs?
Investing in the ICOs is just like an investment in the real estate. In initial stages, there are risks but as the time progresses there are profits. Similarly, ICOs are risky in the early stages then with the time they are rewarding if the project goes well. It might be the solid investment which will likely to pay yet it is sold to potential investors at the market value. For the queries related to investment in ICO, check the ask.fm 2.0.
ICO Investment 2018 Guide
It’s the win-win situation for the investors and companies. Let’s take a look how to find the great ICO for your investment.
1. Check Reviews and Ratings
There are many sites having reviews and ratings of the cryptocurrency and its predictions. They contain the analyses of currency market and in-depth information about investing in ICO. Although these sites are few still you may be able to see a general opinion. You may also gather the information on the social media channels such as Reddit and community channels such as Telegram and Slack. Remember that there are many scams and all the reviews mentioned can’t be authentic. Make sure you browse the trusted and authenticate sites. Scams have the large budget so you should definitely know how to differentiate the trusted ones from the fake reviews or ratings.
2. Monitor the Actual Products
Every company launches its product in the white paper. There are many companies that release their ICO that is purely direct marketing and not result oriented. They come up with an idea; develop a nice looking one-page website and little content in the whitepaper. Their main aim is to raise the millions of investors. However, these ICOs don’t have any plan to work on actual product and multiply the money invested by investors. In fact, such ICOs never ever start. Hence, it is important to know everything about the company releasing the ICO, check their GitHub account to see how they are progressing and the development of their product.
3. Legal Status of ICO
It is extremely essential to determine the legal status of ICO. Without a proper legal framework, investment in the cryptocurrency remains unattractive for the large investors and lack of the growth and development. In the cryptocurrency world, the organization starts to position themselves as the arbitrators to solve the dispute between ICO investors. The mediator is someone who has the trust of both parties. He monitors the arbitrator’s decision.
Another way of protecting investor’s asset is decentralized escrow, which means funds are transfer takes place on a third party account. It allows investors to make the decision for the token distribution, continuing or terminating the project’s finance by the majority of votes. This decision takes place on the legal paperwork with a planning schedule and obligations of the author.
4. Reach Out to Company
Unlike IPO, ICO is usually launched by small companies. Sometimes there are as little as 10 team members. Hence, it is quite easy to reach out the company and have all the necessary communication before investing. By doing this, you will be able to get an idea of how companies going to use the funds, what are their financial goals and how they will make money.
5. Don’t over Invest
The investment in the ICO is quite risky. It may look attractive initially but there are a lot of risks associated with the ICO and you may see the money is back to you without any profit. Hence, a great tip here is to never invest in a single ICO and make sure not to allocate your large part of share into one ICO.
The Bottom Line
ICO will stay the most attractive way to raise the funds of the company. Investors are certainly being interested in contributing funds in exchange for tokens. However, there are many scams related to investment in ICO. So, be aware of the frauds happening in the market and always choose ICOs with attention, in-depth research and care.