ICO: make money with the best investment or just another SCAM?

in #cryptocurrencies7 years ago

What is An Initial Coin Offering?

ICO is the abbreviation of Initial Coin Offering. It means that someone offers investors some units of a new cryptocurrency or crypto-token in exchange against cryptocurrencies like Bitcoin or Ethereum. Since 2013 ICOs are often used to fund the development of new cryptocurrencies. The pre-created token can be easily sold and traded on all cryptocurrency exchanges if there is demand for them.
Ethereum for example is an open source, blockchain based distributed computing platform that features smart contracts and removes risks otherwise inherent in using contracts.

During its 42 days ICO, Ethereum raised $18 million, which made it the most funded ICO at the time, and the first ICO to gain so much publicity. The investors of Ethereum ICO had a growth of 10000% in their balances : a token was sold at 0.0005 Bitcoin and is worth today 0,05 BTC. Incredible raise.

With the success of Ethereum ICO are more and more used to fund the development of a crypto project by releasing token which is somehow integrated into the project. With this turn, ICO has become a tool that could revolutionize not just currency but the whole financial system. ICO token could become the securities and shares of tomorrow.

On the other side, many ICO ends with losses. Cryptocurrencies like Lisk, IOTA-token or Omni did not hold the value in Bitcoin the token has been assessed at the ICO (or struggle to keep it).

We have to say that ICO often is used by scammers and similar. They show you an unbelivable project with a good website but that's it. You can be tricked to send some money or BTC to them that at the end they not going to delivering nothing at all. After receiving an amounts that satisfied them(100 or 150 BTC), the project "disappears".

So we have to keep the eyes open when a new interesting ICO born..
In my opinion to invest in an ICO, before we have to follow some basics step before starting any operation :

• Study deeply the project and his road map;

• Check and read how much documentation you can find;

• Value the team and his capacities.

I can advice to take some other precautions, like don't trust youtubers and other people and don't buy without have a clear idea of the result you can have.
Moreover, you should don't invest so much capital just because a project it seems good. To reduce the risk of receiving bad crashes and lose more than you need, invest just a part of your balance.
We have to know that an ICO can have as results wins and losses and it can hide also scammers and semi scammer,too.

So after that, we can start to think to enter in an ICO, so invest in an idea and in a project that you(just you) think it has value and have many possibilities to have good satisfaction.
A good investment to everyone!

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