Buy ICO be one problem for investors, if the crypto wrong then money will be forfeited from the ico project, then buying Tips ICO online really need to note. If you are interested in this please post you read until exhausted, so that you can understand from this content.
The introduction of smart contracts at blockchain allows developers to create their own cryptocurrency. This opens the floodgates for a startup to launch a bid of their own early coins (ICO) and selling the token as the primary means of funding them. ICO has become the buzz in technology and entrepreneurship for most of this year.
On the one hand, the ICO is a quick and profitable for businesses to raise capital. Record breakers ICO as sales $200 million Tezos worth of tokens suggests that ICO may go beyond the venture capital and the actual public offering in the amount that can be improved. Unlike business loans, ICO also carried no interest and payment schedule pressure, thereby providing breathing space to some company to work on their projects.
On the other hand, the Government and experts have called for warning about ICO. While a number of companies have launched their FAVICON.ICO, some if it turns out it was just a quick cash grabs that deceive their investors. U.s. trade and Securities Commission (SEC) ruled that the ICO should be subject to regulation and guarantee u.s. citizens must be registered before investors can participate. China even make calls strictly to prohibit ICO completely.
However, blockchain are being developed into a technology that's quite disturbing. There will definitely be a startup blockchain ICO potentially large returns. So how can investors take a look and choose a proper FAVICON.ICO? Here are six tips.
1. Find out the people behind them
It is very important to know the nature of the company and the team behind ICO. Most of the newly established companies, but many of the founders had existed in their respective industries. You can review your profile and look for news and mentions in the previous projects and efforts.
Team members must display skills in their respective roles and have a track record and proven experience in the industry they are looking for. Lack of expertise can be a red flag as if the team does not have a CTO who has worked extensively on crypto project before.
Some ICO also held by well established companies looking for ways to expand or accelerate their efforts. Bitcoin wallet service for example, us-based Cryptopay has existed since 2013 and has been providing innovation in the payments space bridging legacy financial services financial technology controlled by crypto. Companies still choose to convene the ICO to accelerate the development of new products and services and is currently running the ICO because demand from the customer base.
CEO Cryptopay George Basiladze said, "for us, the ICO is not simply a matter of expansion, but this is an opportunity to quickly bring new products based on the current market demands."
2. The concept of unreasonable
As far as the concept behind this startup, Maxim offers a unique grip and valuable. Because of the ease of holding the ICO, many startup has fallen into the trap of too much, where they are just trying to be a better version, cheaper, faster than the existing service. Unless they offer something unique, it's likely this startup is only bound to compete and innovate.
The products or services they offer have to address the real needs of the area and using a revolutionary solution. Look for concepts that are really trying to build certain industries by utilizing the power of blockchain.
3. Understand your target market
It is important to put the company, their technology, and products or services in the context of their target market. They will certainly be subject to market pressure and regulation of the industry, so they know the target environment should give you an idea of what the challenges and opportunities facing this venture.
For example, health care blockchain services can bring great potential especially now that laws are being enacted that requires drug manufacturers to have a modern record-keeping and tracking systems in the area where blockchain can prove useful. However, a large and well established players also moved to this space, which means the startup will face competition. What is the concept or technology revolutionary enough to dominate?
4. Evaluation technologies
A person can also evaluate the feasibility of the venture through proof of concept. Ventures with the proof of concept and pilot case studies are often a safer bet. ICO that offer nothing more than ideas run the risk of significant compared with businesses that have a proof of concept that has been available for the evaluation and testing.
Evidence of this concept is also important in this effort shows that know what they are doing. Investors should also be able to test the technology to see how it will appeal to the target users. ICO who have technology functions have a better opportunity to advance toward commercial viability than that still not start development work.
5. Jelly Looking white paper
white paper/white paper serves as a promotion company for potential investors. Thus, it should be well-written and substantial enough to give a convincing argument about why people should trust the venture with their investment. Check out the white paper could be useful in revealing the details of how the solutions work and what they need for their treat.
Quality content also shows how well teams have done their homework. It's also important to pay attention to details such as numbers and quotations. Citing the sensational media, instead of a source of expert and academic subjects can be a red flag for the accuracy of the facts presented. For example, Exio Coin allegedly plagiarized white paper Tezos.
6. Know to what coin
Integral to the ICO is coin or token itself. In addition to functioning as a form of security (similar to traditional investments in stocks or IPO), these coins often have other functions with platforms or ecosystems.
Filecoin, for example, offers a decentralized file storage solution. Users with computing resources reserves can rent it and get the Filecoin token in the process. This token can be used in platform or later exchanged with the fiat currency or cryptocurrency such a popular bitcoin and Aether.
Keep in mind that not all commodities (digital and real) could be ready to be reset and digitally-traded like bitcoin. If the market is not ready, will ultimately affect businesses and their token value.
Bonus: Understand your taste for taking risks
As with any investment opportunity, it is important for investors to understand their risk appetite. Unlike the initial public offering in which the company usually has existed for several years, many of the startup is in the early stages and is not even operational, that takes a lot of risks for investors. There is always a chance for investors to lose money if businesses do not fly.
ICO figures is also not a strong indicator for the continuity of the business. Some effort has been gaining significant funding now being scrutinized for their progress or no after ICO them. ICO is a high risk investment and high value. It is important to know how many are willing to invest and may disappear before participating in one.
Conclusion
One can always take a cue from the SEC and treat like ICO investment opportunities. For the company, ICO continues to be a viable alternative as long as the company is incorporated in the territory that allows and regulations are followed. For investors, the ICO is a means for them to be stakeholders early in an attempt to attract. Although not all cryptocurrency are destined to be equally valuable as the coins of the top like a bitcoin and Aether, investing in the right currency can generate great returns.
The key is to do due diligence and understand the market, the company, and their solutions to see if they have the potential to succeed and deliver the returns that much for their investors.