For beginners, it may help to you to understand what is ICO
An initial coin offering (ICO) is a controversial means of crowdfunding centered around cryptocurrency,which can be a source of capital for startup companie. In an ICO, a quantity of the crowdfunded cryptocurrency is preallocated to investors in the form of "tokens", in exchange for legal tender or other cryptocurrencies such as bitcoin or ethereum. These tokens supposedly become functional units of currency if or when the ICO's funding goal is met and the project launches.
ICOs provide a means by which startups avoid costs of regulatory compliance and intermediaries, such as venture capitalists, bank and stock exchanges,while increasing risk for investors.ICOs may fall outside existing regulations or may need to be regulated depending on the nature of the project, or are banned altogether in some jurisdictions, such as China and South Korea.
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https://en.m.wikipedia.org/wiki/Initial_coin_offeringDEFINITION of 'Initial Coin Offering (ICO)'
An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
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https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp#ixzz59E02j7HW This also explains what a soft cap and hard cap is because many people still ask me this question. A soft cap is the minimum amount that a project can accomplish, and the hard cap is the maximum amount a project wishes to mobilize. Is hard or small is it good? It can be seen that last year, the caliber projects called for a hard cap of just $ 20-25 million to be able to carry out the project and profit the investors this year. began to greedily call for huge cap stocks of up to 50 or 100 million dollars while the project was just ideas and there was not a market or market that was too small to fit their hardcap. call that.
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Capitalizing on the top 100 in the coinmarketcap 101-200, just over 50tr have been added to this top, so the projects they call hard cap $ 50 million, only the Crow Price on the floor, its capitalization is enough. To stand in the top then, you think the ability to pumb or SML is high. Evaluation of a hard cap project is extremely important, but it is not a good hard cap because it depends on the size of the market and the competition for the projects it needs. Big money to hit the market potential and beat the competition grows fast to dominate the market before being swallowed.
The hard cap is so small that it can be easily understood: when we open a clothing shop, it is enough to call a capital of 300 million, but to open a cow farm 600 is still small. But often the projects with small harp cap will have stronger pumb strength than large hard cap projects.
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- ICO and pre-sale or private-sale prices are more than double that of the Crow-sale, which should be considered before purchase (this should include pre-sale or private-sale bonuses). Ask admin, the project does not admin reply to this problem I will not participate.
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- 1 project must have a good community, such as Arcblock in terms of product without any crooked idea blockchain 3.0 is still running on the ERC ERC-20 platform but because Krypital Pr team is good, has After the success of the CMT project (Cybermiles), people are still fighting each other, fomo is good (fomo understands the crowd effect) and also x3 after going to the floor. There is no technology product.
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But you absolutely do not evaluate the project based on the number of telegram members. Why, creating an Airdrop program to donate coin free a day with a few tens of thousands members, these members they join the telegram they never notice or return to that channel, because they only join To get free coin only. Refer to the community on Reddit, medium, github, Tiwtter
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- A project where the team holds too many tokens and tokens that are not locked will not be good for the offer and the token price, as they hold more than they are evaluating their project too high, assuming they hold Over 30% of the market capitalization is $ 100 million, then their team holds up to $ 30 million, which also means the hard cap is pushed too high compared to its real value.
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- Do not participate in Russian projects because of a scam, no or no pumb, see coinmarketcap in any of the children will not know
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- Do not trust the site ico such as: icoben, icofox, icoholder - These are paid to Reviews (Last bitter bear is the 70 billion bibs lost because the ICObench rate this guy 4.1)
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- Priority is given to projects from Switzerland because the country's legal system is almost complete for the ICO, Singarpor is also a good suggestion, these two countries are the best for the company headquarters
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- One project that too many participants in Vietnam also need to consider, because most of them play surfing style, some of his Vietnamese participants on the floor to the discharge than the dams of Hoa Binh floods.
