Hello, I'm new to this crypto world. I heard about ICO (Initial-Coin Offering) but I dont deeply understand what ICO is, so here i want to ask you about :
1. What is the actual purpose of ICO?
2. Is investing in ICOs profitable? or sometime could make us lose our money?
3. I understand there are always scam attempts in online network, so how to know know if the project is scam or not?
maybe i will ask more later ..
1. What is the actual purpose of ICO?
2. Is investing in ICOs profitable? or sometime could make us lose our money?
3. I understand there are always scam attempts in online network, so how to know know if the project is scam or not?
maybe i will ask more later ..
1. The purpose of a ICO is to raise funds for a team to work on their crypto solution.
2. Investing in an ICO 'can' be profitable at times but requires just as much, and really probably more due diligence than any other coin purchase.
3. Yes they can be scams; more so now than when ICO's first kicked off. Many people have seen the tens or even hundreds of millions that have been raised in ICO's.
On a note of scams... there are those that start and purposely scam users. With some work you can identify them. The more difficult item to identify is whether or not the project team is competent. Giving any team, not just an ICO, all the funding up front then expecting them to wisely use it to deliver a product doesn't work. The same happens outside of crypto... just look at all the horror stories of giving a contractor 100% payment up front and waiting for them to deliver.
