Crypto News: The internet has been crawling with ICOs for a while now and a lot
of people are looking to make investments that will yield substantial returns
in the future. While this is a good thing to do, there are some things you need
to put into consideration before investing in an initial coin offering. The ICO
trend has gotten bigger, and as more people are getting to know what the
cryptocurrency world is about, the more ICOs will be established.
Most people are looking to take advantage of ICOs in order to make
quick and easy cash. That is why a lot of companies are coming out with
different ICOs on industries and programs, feeding on the eagerness and
enthusiasm of people to make quick money. While there have been really
successful ICOs, like Ethereum, there are also cases where something happened
along the line and the whole project collapsed. Take DAO for instance; after
raising about a hundred million dollars during their ICO campaign, it was
reported that a hacker got into the system and carted away millions of dollars,
which made DAO bankrupt, unable to repay their supporters, and unable to
complete the project. There have also been cases where ICOs were launched only
for the campaign to end and people realized they had been defrauded. And since
there's no particular body regulating the crowdsales, investors are usually
left at a loss.
What we hope to do in this article is provide you with the right
information on what to look for before investing in an ICO. This way, you'll be
protected from fraudulent activities disguised as ICOs, and you'll be able to
make careful considerations on the initial coin offerings that will provide you
with good returns. So without further ado, let's take a look at some of the
factors to consider before making an ICO investment.
THE MAIN PROJECT
There are questions about the project you need to ask yourself
before investing in its ICO. Like what exactly is the project about? How did
you come about the project? What are the future plans of the project? How much
impact is the project going to make in the industry? Is the cryptocurrency
community you are involved with talking about the project? All of these
questions should be put into consideration before you buy in. If everyone is
talking about the ICO, but they do not know what the project itself stands for,
then you might want to throw the project in a closet. Even if you believe the
project is legitimate, you still need to make your research in order to know if
the idea behind the project can be a successful one or if it's going to go down
the drain few months after the ICO. Ensure that you do not invest your money
until you are 100% sure that your investment is going to be safe.
THE WHITEPAPER
Most ICO campaigns come with a whitepaper. A whitepaper is a
document that explains everything a project is about to an investor. You'll get
to know the problems the project is aimed to solve, why it is a credible
investment, and how the company plans to make the project grow in the coming
months and years after. The information written in the whitepaper is often an
easy language, which means, you'll be able to understand what it says. It might
be lengthy but it will do you a lot of good if you can read through and understand
what the paper is talking about. A good whitepaper must contain real, specific
figures, and statistics that are presentable and are from credible sources. If
you finish reading the whitepaper and the information is too general, like it
could have been written by anybody, then it's better you let your money rest in
your bank account.
SUBSTANTIAL BACKING
It is true that the presence or absence of a credible organization
support does not actually translate to the success of an ICO, but still, it
provides a safe environment to invest in. Not every project is owned by a new
company. Some of these blockchain projects are from companies that have been
around for a long time. They are realizing how good the blockchain can be and
are also launching different projects based on the same technology. Therefore,
if the project you are looking to buy its ICO has got credible backing, then
you can invest your money with peace of mind.
THE ICO PLATFORM
Another factor you need to carefully consider is the platform on
which the ICO is being offered. For instance, a Canadian ICO being hosted by a
Singaporean platform is a complete no-no. It only makes sense that a Canadian
project takes on a Canadian hosting. Ensure that you check the credibility of
the platform before you invest your money. Once you see that the platform is
insecure or completely unknown, or they haven't been used to
host any ICO in the past, then it's best you look for other investments.
SUMMARY
You can make a lot of future profit when you invest in an ICO. But
ensure that you find out everything you can about the project before investing
your cash. There are a lot of scammers on the internet, and with every
technology revolution comes a different type of scam. So you need to be really
careful when investing in an ICO.
1 Comments
nice imformation sir...
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