ICO

ICOs are quite new to the market. There may be some controversy surrounding them because of their unorthodox way of operating. Many people do not recognize the methodologies of ICOs, but in all honesty, they are pretty much IPOs, but crypto.

Essentially what happens is that a new company will offer their coins at the beginning of their career, to willing investors. This has proven one of the best times to purchase cryptocurrencies as they quickly grow in price after the company had kickstarted their performance. What’s unfortunate about these ICO listings is the fact that it’s very easy to scam people with them. It is no news that companies asking for donations in exchange for future profits can be dangerous. The same can be said about IPOs when companies sold their company shares, promising a drastic increase in prices in the near future.

What’s so good about ICO listings?

Initial Coin Offering (ICO) are really effective to help kickstart a startups career. For example, Ripple and Ethereum took the same path when they first began and now look at them. Let’s break the whole process down so you can understand it more easily.

Say you’ve created a startup that is specializing in Blockchain and inevitably created your own cryptocurrency. What’s important to note here is that you have mined most of this crypto for yourself, meaning you own the biggest capital. In order for you to gather investments in a more trustworthy manner, you need to offer these coins at a low price for potential investors. One of the main reasons companies use this method is because they won’t have to sell shares of their companies, therefore they won’t be pressured by shareholders to make decisions they do not want.

For an ICO investor, it is one of the best ways to make a quick buck. Imagine if you took part in the Ethereum ICO, bought it for like $1 a piece and sold it at its highest point, a really nice profit right? Those are the moments where most of the crypto rich people today made their money and are continuing to make money. All it really needs is just research and risk-taking abilities.

ICO listing scam potential

Yes, ICOs can also be subjected to scams, because of how unreliable they can sometimes be. However these kind of fundraising campaigns are not something new, scams occurring in them is not something new as well. There have been numerous people scammed by IPOs as well, on a much larger scale. What’s important for you to do is to conduct research and read some reviews before you commit.

It is actually quite harder to be an ICO scammer because people are now only looking at companies that are not only backed by their common investors, but also corporate partners who can vouch for them. That is why the number of crypto scams has been declining more and more.

In order for you to find your perfect ICO to invest in we created a list above that will help you decide whether or not you want to continue with this venture. Please also pay attention to the key points that will be mentioned in the reviews, so that you can later be able to identify false campaigns on your own.