If your last internet search was along the lines of cryptocurrency then you have landed on the right page.If you start to compare the trading value between ICO’s and regular trading, then you will see a big disparity. But, do not let that fool you because of the regular global trading being 5.1bl and the ICO trading being the only 2bl.
Yet, of course, there has to be a reason for the recent upsurge in the cryptocurrency market. So, let’s find out what are ICO’s and cryptocurrencies in the first place.
Inside track of ICO and Cryptocurrency
Ever wondered why Bitcoins and Ethereum are called Internet Gold? It is simply because it gives you an alternative to the regular economic transactions. Its a form of cryptocurrency that is not part of the regulated financial transaction portals.
It uses the Blockchain technology to conserve and confirm economic transactions. Its a digital currency and transaction process and you can add any value unit to it. The recent upsurge indicates that these currency tradings has revolutionized how tech people perform transactions.
What is ICO’s?
To understand ICO you would have to be clear on how traditional companies raise capital funds.
- The company sells ownership shares for cash
- Debt raising but promise to pay back via interest
ICO mainly means that you as a startup can create a digital coin or token sales that let you sell it to the public in an initial offering. That is why ICO means, Initial Coin Offering.
You can compare an ICO to the process of an initial public offering (IPO). What sets them apart is that instead of an equity share in a company, ICO will provide the investors with a new coin or a token.
The most common use for this ICO is that it gives the investor a digital coin of value and in turn, you get the project or service you are looking for.
How do ICO’s work?
Before I give away the secrets you would need to know how ICO’s work to raise funds.
If a cryptocurrency owner uses ICO to raise funds, they first publish a white paper stating the business module, plan, and execution.
Furthermore, the below information is highlighted in the white paper.
How much money is needed to undertake the venture or the project?
Moreover, you will have to include in the whitepaper everything about the token sales, when they will be issued, and where to find your ICO lists. How these coins will be of benefit to the investor. In other words, your pitch must include the details of the demand of your coins and where you will be listing ICO’s.
The only difference between token sales and share sales to the public is that token sales do not mean the investor wons your company or has voting rights. Even though in some cases, the project backers do offer those rights too.
The ICO is complete only if the required amount is raised if it is not, then you have to return the ICO investors the money.
What makes investors so excited about ICO innovation?
Now that you know how the ICO fundraising works and ICO listings work, it is just like any other public limited company.
The ICO offered and listed and token sales listed can be also used in regular economic transactions. So, Investors buy these coins hoping that the value will be worth millions in the future.
This would lead you to have an upsurge value of crypto coins in comparison to the time frame in which the project was launched. Even if cryptocurrency is different and ICO listed are different than normal public share listing.
This dynamic lets investors to invite more buyers, making the demand rise higher.
Ethreum is the leading crypto coin to date.Ethereum raised $18 million at only $0.40 per Ether (token) in 2014. This project went live in 2015, which has now soared to ~$35 billion market cap and $370 per Ether as of June 2017. Making the owners very rich.
Which ICO Listing sites are reliable?
People always ask me which are the best places to list ICO and how to know the upcoming list of ICO.
I am going to address that question through the below list for you that make it easier for you find the upcoming ICO lists.
Top ICO List: Best Initial Coin Offering List 2017 | #1 ICO Listing – They have one the most comprehensive ico list and most reliable ones of all. Also, Coin Market Plus offers the best crowdsale and token sale lists with a big loyal fan base and least brokerage. On top of that, they have ongoing token sales and calendar in their useful directory website.
What’s with the Celebrities promoting ICO?
Have you seen your favorite superstars like Jamie Fox and Ghostface Killah promoting and telling their fans to invest in a hot new ICO?
When boxing superstar Floyd Mayweather Jr and DJ Khaled promoted Centra, it is always said that Centra has a grade A Lawsuit against them for selling unregistered securities. Not sure what will be the outcome of the lawsuit but we can tell you that it is worth nothing since both superstars have deleted those posts.
You want to invest in ICO’s? How to know which one are the best ones
Scout out this list. Make sure to do your homework is done before you venture in to this. ICO’s are barely regulated so you need to make sure you read the White paper properly and everything.
The Bottom Line!
Cryptocurrency is all about high risk and high reward so you need to do your homework well to know which coins to invest in.