Part 4
SECTION A | ICO 101 | QUICK INTRODUCTION TO ICOs |
- Pros and cons of participating in an ICO as an investor
10 Advantages of participating in an ICO as an investor:
Early contributors can have access to and will have more liquidity in early stage companies. Being early also increases the potential for rapid capital growth;
Depending on the ICO, there can be a big network behind it (e.g. if the token launch takes place on the Ethereum network), generating additional buzz and potential capital appreciation;
Custody without intermediaries. The one with the private key owns the tokens;
Limited regulatory scrutiny (so far);
ICO coins have the same anonymity as cryptocurrencies such as BTC and ETH;
Transparency of use of funds, an escrow can be used to verify how the funds are being spent after the ICO;
An innovative way to deploy capital that offers a hedge against political and economic shocks;
Contributors are usually the first users of the (utility) token — thus unlike holding a stock of a company whose products a contributor never used, ironically tokens can be more tangible than securities;
A high risk, high reward asset which is (to some extent) disconnected from the stock market and the economy;
Possibility to own an alternative asset not based on FIAT (state regulated) currency.
Read full guide: https://hackernoon.com/a-comprehensive-guide-to-icos-crypto-funding-the-rise-the-boom-the-bust-the-next-b159fdf38010
Flexe.io - full stack ICO and STO marketing 👉👉👉 https://flexe.io/?utm_source=steemit&utm_medium_posts
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