What is an ICO? How to Make Extra Money With the 2017 ICO?
What is an ICO that can lead many to believe that the ICO will promise the potential to disrupt both IPOs in the technology companies?
Opportunities and challenges for you to be able to pick up more super-profitable.
What is an ICO?
ICO stands for Initial Coin Offering. It’s an event, sometimes called a “crowdsale”
Just like the IPO (Initial Public Offering), the ICO is a legal form that allows companies to mobilize capital from investors through the offering of cryptocurrency shares in the form of a token to the public.
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And in conjunction with reading the following important information:
When a company releases its own Cryptocurrency. They usually issue a certain number of encoded tokens and then sell these tokens to different investors, most commonly through Bitcoins, or possibly other currencies. .
As a result, the company has enough funds to develop the product or solution and the participants have ownership of the shares.
There have been several individuals who have become dollar millionaires after only one night thanks to the way they invest in the ICO, including some noteworthy coins such as Ripple and Ethereum.
Of course there have been cases of fraud or unsuccessful ICO projects. Therefore, it is important to know the options carefully before investing in an ICO.
The basic stage of development of an ICO
Stage Set up ICO
This is the stage the company built the database system, Token, Blockchain wallet, legalized for Cryptocurrency.
The Cryptocurrency shares may be coin currency algorithm or coin currency issue.
Phase I ICO ecosystem building
At this stage, the ICO starts the connection, building the community that accepts that Cryptocurrency payment, or the solution that Cryptocurrency provides.
- Eco Ripple, Digibyte are the banks.
- Steem Coin Ecosystem is a shared community similar to FaceBook.
- Multi-level marketing ecosystem such as Bitconnect, Yocoin, Onecoin.
The value of Cryptocurrency depends on the broadness of the ecosystem.
ICO wants to develop successfully or not will rely on a large enough and sustainable ecosystem.
This period ICO expands the idea of the project through media channels and investment forums such as: icoinfo.net, coinschedule.com, cointelegraph.com.
This time, it was officially called to raise funds by selling the first tokens or coin to investors.
Once the investment is large enough to carry out further expansion of the ecosystem and formalize the cryptocurrency on the floor.
An interesting example is that Bitcoin has only been available for a year, and you know BitConnect has grown 18x to $ 9 during the six months of ICO as of November 2016. Bitconnect’s ecosystem continues to grow and its value reaches $ 50 per copper bit
Index Period (on the floor)
This is the official Cryptocurrency on the floor such as Poloniex, Bittrex, Okcoin.
This is the most important stage of the ICO in the Crypto-market.
When officially entering the market value Cryptocurrency is determined based on the market supply and demand
If the ecosystem is strong enough, the Cryptocurrency value will continue to grow and develop
What is the difference between an IPO and an ICO?
ICO and IPO have many similarities. However, between them there are major differences:
- On the subject of capital mobilization:
- IPO is aimed at large investors
- ICO is aimed at small and large investors
- IPOs are usually managed strictly by the government. A company wishing to participate in an IPO needs to prepare a lot of relevant papers before it can issue its shares.
- As for the ICO, it is a new development model that is not currently governed by government regulations. This means that any company can start an ICO at any time or anyone can contribute capital to the company. This is also a concern many investors, because a free environment without management also brings risks for investors.
So how to win the ICO investment game safely and control the risk?
Find yourself a highly reputable ICO list
You can browse through an ICO list reviewed by experts then proceed to the next step
What is the company’s ICO solution?
We are the investors who need to study the ICO solution of the company to assess whether the solution is the solution that the world is needing or not. Accepted by the community for use?
By visiting their official website, community information channels are also discussing solutions that the ICO is developing to consult with other investors.
What is the research on the ICO ecosystem?
A successful project or not can not be without the ecosystem community using it
Evaluation of the project through the community is important to find out whether the community’s acceptance of the ICO project is high or low.
This is a mandatory practice, as the company itself is required to publish press releases to the worldwide community through the BitcoinTalk (or Reddit) or network forums. Social as Twitter, Facebook, Medium, or public source code on GitHub or the common platform of investors and project developers is Slack (which is quite similar to Telegram used by people).
Through the press release channels, you can completely ask questions for the project leader there.
The exchange rate given by the company when calling for capital, the company will have the right to decide on the exchange rate during the ICO period.
If you feel that the exchange rate offered by the company is not appropriate, you can ignore it to choose another ICO project.
When the listing on the electronic money floor, the exchange rate will automatically adjust to the real needs of the market, not the company anymore.
If the rate at which you bought the ICO is lower than the rate on the floor, continue to hold and become a bagholder, and when the price of the cryptocurrency rise, you will be very profitable. and risk is lower than other investors.
I have introduced you to the fundamentals that are important for you to take a serious analysis before deciding to invest in an ICO project.
Have any successful ICO?
In fact, there are many successful ICO projects including BitConnect. But here I would like to mention the first successful project with the ICO Mastercoin.
Mastercoin has raised $ 5 million worth of Bitcoin in 2013 by selling their tokens.
There are already a number of companies that have adopted this ICO model, including Ethereal in $ 18 million in 2014, or $ 16 million in Waves in 2016.
That said, the ICO is an effective way to start an electronic money project, provided that the company’s product or solution meets the needs of a large, transparent, and well-rounded user community. Develop strongly to ensure that their products or solutions continue to grow steadily.
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Wish you success with ICO 😀