What is ICO & How It Is Being Used By Scammers?
ICO is a 21st-century trendy expression it's miles an unregulated fundraising mechanism used by crypto world startups to crowdfund their blockchain ventures by issuing virtual currency tokens. An initial coin offering is comparable in idea to an initial public offering (IPO), both a system wherein organizations raise capital, at the same time as an ICO is a funding that gives the investor a cryptocoin, more generally known as a coin or a token in return for funding, that's pretty unique to the issuance of securities as is the case in an IPO that gives the investors shares in that particular company or organization.
The first token sale (also known as an ICO) was held by Mastercoin in July 2013. Mastercoin itself a massive debate so it would be difficult to cover it here but I am gathering information regarding it soon I will write about it.
Ethereum fund-raised with a token deal in 2014, bringing 3,700 BTC up in its initial 12 hours, equivalent to around $2.3 million at the time. It doesn’t mean every ICO will get successful Fewer than half of all ICOs survive four months after the offering.
ICOs can be used for fraud & Ponzi schemes, in addition to legal activities which consist of company finance and charitable fundraising. The Securities and exchange commission (SEC) has cautioned financial specialists to be careful of scammers, the use of ICOs to execute "pump and dump" schemes, In which the scammer talks up the fee of an ICO an awesome manner to generate interest and power up the fee of the coin, and then speedy "dumps" the cash for a high passive profit.
Here are the websites that keep you updated regarding ICO & ongoing token sales:
CoinSchedule:
https://www.coinschedule.com/
Investor.gov:
https://www.investor.gov/
TokenMarket:
https://tokenmarket.net/
Smith+Crown:
https://www.smithandcrown.com/
ICOtimeline:
https://icotimeline.com/
ICOtracker:
https://icotracker.net/
These connection will interface you up with the organization promoting the initial coin offering. However from there, It's essential to do your own particular profound jump before thinking about putting any cash in the diversion.
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