During the previous few years, Cryptocurrencies have shown tremendous growth. It began with Bitcoin and now we have up to over 2,500 projects. This quick growth in Cryptocurrencies we see today was brought about by what is referred today as ICO; short for ‘Initial Offering”.
If you have ever wanted to invest in a cryptocurrency network, you have probably met with two major challenges. One is a lack of experience, the other is funds. As for experience, we all know it comes with taking action but as for funds, you are required to source them from somewhere.
One of the places you can source funds from is ‘the traditional venture capitals.’ The main challenge with this source is that it will require you to give up a certain percentage of your company.
To save yourself from this, you can do what is called ‘Initial Coin Offering’ Initial coin offering is another term for a process of fundraising.
To begin, you need to come up with a new and unique idea that can be connected to the blockchain. You can choose from the many existing projects in crypto space. Make sure your choice is among top-rated/high standards.
Stage two: create a ‘whitepaper’ document. This is a document where you explain the goals of your project and the step-by-step process on how to achieve your targets.
Stage three is to market your idea by selling your idea to people and asking them to invest in your project by purchasing tokens. These tokens can be bought through digital currencies like Bitcoins, Ehtereum and the like.
Although ICOs are high-risk investments that have a potential for being scams compared to ‘Initial Public Offering’ ICO has some great benefits too. Three main benefits are below:
Ownership and Control. Once you have launched an ICO, you are in full control. Investors don’t own shares of your company but future services.
Globalized. As an ICO startup, you are allowed to source funds from any part of the world.
Freedom from bureaucracy. Your Company is not restricted by regional bureaucracy. Bureaucracy is often a hindrance and time-consuming.
The debate on whether ICOs tokens are secure or not is something that can be debated on. Jay Clayton, the chairman of the Securities and Exchange Commission approved tokens that constitute an investment to be classified as secure in the federal laws that govern securities in the United States.
A Californian food review digital app “Munchee” was the first to get a ‘cease and desist order’ for trying to source funds to develop a digital token. Another company “Ripple” (XRP) likewise has been faced with legal action about its securities.
One of the features that attracted investors to ICOs is the fact that the tokens have the capability of rising in value very fast. This makes it possible to buy and sell the tokens within certain periods.
However, you need to be cautious when considering which ICO to invest in. The reason is that currently there are no proper laws regulating the launching of ICOs. We advise you to research well before you invest in these areas.
Take your time to study the ‘white paper’ and talk to those who are involved in selling tokens to help you make an informed decision before investing. There are cases of people that invested in this business and lost their money to scams and fraudsters.
One of the places you can source funds from is ‘the traditional venture capitals.’ The main challenge with this source is that it will require you to give up a certain percentage of your company.
To save yourself from this, you can do what is called ‘Initial Coin Offering’ Initial coin offering is another term for a process of fundraising.
To begin, you need to come up with a new and unique idea that can be connected to the blockchain. You can choose from the many existing projects in crypto space. Make sure your choice is among top-rated/high standards.
Stage two: create a ‘whitepaper’ document. This is a document where you explain the goals of your project and the step-by-step process on how to achieve your targets.
Stage three is to market your idea by selling your idea to people and asking them to invest in your project by purchasing tokens. These tokens can be bought through digital currencies like Bitcoins, Ethereum and the like.
Although ICOs are high-risk investments that have a potential for being scams compared to ‘Initial Public Offering’ ICO has some great benefits too. Three main benefits are below:
Ownership and Control. Once you have launched an ICO, you are in full control. Investors don’t own shares of your company but future services.
Globalized. As an ICO startup, you are allowed to source funds from any part of the world.
Freedom from bureaucracy. Your Company is not restricted by regional bureaucracy. Bureaucracy is often a hindrance and time-consuming.
The debate on whether ICOs tokens are secure or not is something that can be debated on. Jay Clayton, the chairman of the Securities and Exchange Commission approved tokens that constitute an investment to be classified as secure in the federal laws that govern securities in the United States.
A Californian food review digital app “Munchee” was the first to get a ‘cease and desist order’ for trying to source funds to develop a digital token. Another company “Ripple” (XRP) likewise has been faced with legal action about its securities.
One of the features that attracted investors to ICOs is the fact that the tokens have the capability of rising in value very fast. This makes it possible to buy and sell the tokens within certain periods.
However, you need to be cautious when considering which ICO to invest in. The reason is that currently there are no proper laws regulating the launching of ICOs. We advise you to research well before you invest in these areas.
Take your time to study the ‘white paper’ and talk to those who are involved in selling tokens to help you make an informed decision before investing. There are cases of people that invested in this business and lost their money to scams and fraudsters.
