ICO typically involves selling a new digital cryptocurrency or a token to raise funds for a project by the company or a group of people pursuing that project.
ICO typically is has the following inclusions for explaining the concept to the investors:
1 A website containing all the information about the project like project purpose, founders and their background, token structure in various fund raising
stages of ICO like the PRE-ICO stage and ICO stage, Discounts offered to early investors
2 A video explaining the concept and how it will bring benefits to the community accessing this platform or any disruption in a industry by using blockchain
or Artificial intelligence or any other latest technology
3 A whitepaper explaining the business model in detail
Once the concept is designed and is ready for investors to view, this is then marketed on a digital marketing platforms
Topic: Can someone give me a brief about how ICO's work ? (Read 93 times)
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Welcome to cryptocurrency man.
Like the others stated its your chance to get in early on something before it is built. Here are some things you need to take note of though around ICO's
1. a lot of them are scams, you should be careful of high % premine and make sure you research it A-Z. Look out for things like fake team members.
2. Make sure it has an actual use case and is something that will benefit humanity. There are tons of things that really dont need a blockchain
3. Dont ever pay for an ICO from an exchange, most of them are ethereum based so send your funds from Myetherwallet. If you send from an exchange you will lose your money.
4. ICOs are extremely high risk, dont put in a lot of money. You really dont need to put in much. A good ICO will give you 10-100x gains. Unfortunately they are the minority. There is a good chance of taking big losses.
5. One of the biggest things I look for in an ICO is users. Users = value, I dont put my own money into anything that doesnt have at least 100k ICO participants, that would also reduce the risk of a scam since its not likely for so many people to miss some evidence of a scam in their investigation.
Again, research the hell out of everything before you put money in it. Remember youtubers will often times promote an ICO with a referral link. In these cases consider if its really a good product or if they just want to get free coins off you.
Play it safe, 5-10% of your portfolio into ICOs is fine, dont put your rent money into ICOs.
Like the others stated its your chance to get in early on something before it is built. Here are some things you need to take note of though around ICO's
1. a lot of them are scams, you should be careful of high % premine and make sure you research it A-Z. Look out for things like fake team members.
2. Make sure it has an actual use case and is something that will benefit humanity. There are tons of things that really dont need a blockchain
3. Dont ever pay for an ICO from an exchange, most of them are ethereum based so send your funds from Myetherwallet. If you send from an exchange you will lose your money.
4. ICOs are extremely high risk, dont put in a lot of money. You really dont need to put in much. A good ICO will give you 10-100x gains. Unfortunately they are the minority. There is a good chance of taking big losses.
5. One of the biggest things I look for in an ICO is users. Users = value, I dont put my own money into anything that doesnt have at least 100k ICO participants, that would also reduce the risk of a scam since its not likely for so many people to miss some evidence of a scam in their investigation.
Again, research the hell out of everything before you put money in it. Remember youtubers will often times promote an ICO with a referral link. In these cases consider if its really a good product or if they just want to get free coins off you.
Play it safe, 5-10% of your portfolio into ICOs is fine, dont put your rent money into ICOs.
ICO is offering of the tokens at the early stage, when it is not coin yet. Guys who have ideas and need money for implementing it offer coins (smth like share) to the society, than they rise money and bring the idea to life. If it works investor (person who bought tokens) will get profit.
ICO (Initial Coin Offering) COINS issued for the first time, from the concept of the Initial public Offering (IPO) of the stock market, is first issued tokens, block chain project is a project to raise funds for encrypted digital currency/block chain of commonly used way, early participants can be generated from the Initial encryption digital currency in return
I am new to the Blockchain and Cryto world and I have been reading lot of blogs and articles about them if someone can give me a brief about ICO's it will be really great.
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