What are ICOs ? Why Investors Love ICOs ?

What are ICOs ? Why Investors Love ICOs ?

What Are ICOs ?

ICOs also known as initial coin offering, is a fundraising campaign started by crypto startups to raise capital for the growth and development of their new products or services. Most of these projects are based on blockchain or cryptographic protocols.

Investors are usually rewarded with the cryptocurrency tokens that offer lucrative returns.

ICOs are IPOs (initial public offering of the shares of a company) of the crypto world.

They are very similar to stocks, with the difference being, they are associated with certain programs or softwares.

ICOs are deemed as high risk, high reward offerings because some ICOs have yielded enormous returns to their investors while others failed to perform or turned out to be a scam.

Good ICO :

In 2014, ethreum ICOs raised $18 million worth bitcoins at the price of 35 cents per Ether. Now, that same one ethereum is priced at $350.

Bad ICO :

Onecoin founded by Bulgarian Ruja Ignatova was the biggest MLM and ICO scam scheme in cryptocurrency history. Indian authorities apprehended 18 onecoin officials but its founder Ruja successfully scammed and escaped with more than $2 billion of investor’s money.

Notes :

  1. Invest what you can afford to lose.

2. Always do as much research as you can before investing in ICOs.

The best thing about ICOs is that they are presented openly to the entire world so that anyone can invest in them. Also keep in mind that sometimes such transparency also gives sudden high inflation.

How To Invest in ICOs ?

As they are announced publicly, anyone can buy ICOs from any part of the country and you don’t need to provide any sort of ID verification.

All you need to know is, in what way is the company offering investors to buy their ICOs.

You can invest in millions or even as little as $10.

First ICOs was held in 2013 and nowadays thousands of ICOs are launched yearly. So, you have plenty of options to choose from.

Use ICOwatchlist to check out which ICOs are live and upcoming or have ended.

Why Investors Love ICOs ?

Primary reason why investors love ICOs is that they can provide 10X, 100X or 1000X returns in a very short period of time. For example, Ethereum ICO made 500 investors millionaires in a short period of time.

Early investors of an ICO are hopeful and believe that their investment will reap heavy rewards once they go mainstream.

It is fairly easy for a company to launch an ICO and distribute their tokens to investors.

Summary :

ICOs are a highly rewarding. Studies found that ICOs delivered more than 10X averagely on the investment in the past few years.

But they are completely unregulated and have zero government-backing.

You need to do diligent research on it because if it turns out to be a scam, your funds are gone.

That’s it.

If you have any questions, ask me in the comments below.

If you have any tips/suggestions, send me an email via Contact Form.

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