Reviews of ICO (Initial Coin Offerings)

First Coin Offering (ICO) is a crowdfunding strategy used by new cryptocurrency companies to increase capitals. In ICO, some proportions of those recently issued cryptocurrencies are offered to people that are interested in supporting the project. They are offered to swap for other established cryptocurrencies like Bitcoin, Fiat and Ether.

Backers purchase the new cryptocurrency having an intention to create a profit when it increases in value. It is comparable to the principle of folks making a profit once the share they purchased in the stock market increases in value. ICO is different than buying stocks at a stock market because you don’t get a share of the ownership right once you invest in the new tokens.

ICO review on ICOs

Ethereum conducted among the biggest ICO in 2014 by increasing a total of $18 millions in the first stage of 2014. They violate the record by raising 3,700 Bitcoins which is equivalent to $2.3 million dollars over the first 12 hours of this campaign. Kik ran the first mainstream ICO in September 2017 however, the project was disrupted by a phishing scam via the flow of a false URL from the social media.

Today, ICO sales have become increasingly more popular with around 50 nominal sales being conducted each month. Beginning from 2017, ICO has been growing at a fast pace with $2 billion value of nominal earnings successfully conducted. This proves that it is not going to become a temporary method used by fresh cryptocurrency company to increase funds but it’s here to stay for extended term.

These days, ICO token sale is so popular that at least several ICO begins daily. It has been predicted that over $4 billion value of token sales will be conducted this year. Genesis Vision, a Russian based company, conducted an ICO campaign that runs from the 15th October 2017 to the 15th November 2017. They manage to increase a total amount of $2.3 million in the token presale.

How Does ICOs Fundraising Work?

A cryptocurrency firm that wants to increase capitals via ICO must offer a couple of details including job description, project purpose, amount have to be increased, percentage of tokens the company will keep, kinds of virtual currencies approved, and the period of this ICO campaign. Backers that are interested will email the seller and ask for more information of this job before performing a trade. If they successfully increase the amount for your campaign, they will execute the strategy to complete the undertaking. Otherwise, they’ll return the cash back to the backers.

ICO can be performed to help raise funds for various kinds of businesses and charity business. It has also been utilized as an instrument by scammers to conduct frauds. Scammers would use means to grow the ICO value briefly and leave the job afterwards to make a fast profit. Scams happen because of the lack of regulation from the government. Just like any investment, there is a risk when coming to invest in the first coin offering.

No statistic about the business that runs the ICO is granted so it is tough to generate a prediction. Backers usually would check out data such as who will receive the collected money, as well as the social networking profile. To make a successful investment in ICO, one wants to be patient and willing to spend some time to conduct research on the corporation.