The concept of cryptocurrency ICO means people can help shape the future of this entire ecosystem. There is a wide range of different projects raising funds through an ICO, and every single project aims to bring something new to the table.
Just as the name implies ICO means Initial Coin Offering. It consists of crowd funding on top of a block chain technology. A version of bitcoin that can also host application called”Smart Contracts”. Ethereum-based tokens often appreciates in quite an outrageous value. Value gains of over 1000% over the years. Enthusiasts now see cryptocurrency ICOs as something more than worth investing into.
The fact that ICOs are open to the general public means anyone in the cryptocurrency industry can partake if they can get funds transferred on time. This means the projects can raise funds in a completely decentralized manner, which is quite important. More investors from all over the world means there is less centralization, which is what cryptocurrency is all about.
Many have seized this opportunity of investing in ICO to become multi-millionaires as tokens often appreciate outrageously after the launch. These tokens can be exchanged in the exchanging sites for profit.
However, there are drawbacks of ICO investment. Just as ICO can make the investors, this can wreck one too. This is so because ICO it is not regulated or registered and so the investors cannot be reimbursed should anything wrong happens.
Amateurs who although with good intentions, but lack the connections, marketing knowledge and resources to maintain the projects in the long term. Such projects fail eventually with the ICO investors losing all their money.
Scammers also use unregulated ICOs to prey on the greedy and gullible investors.