The present-day tendencies on the financial market make us be informed in their development. These days, lots of people talk about cryptocurrencies; some of them are even obsessed with the new tendency. In our previous reviews, we gave a detailed description to cryptocurrencies. Today, we’ll bandy about one more new tendency, such as coin ratings and ICO. We’ll find out what this means and how to make a profit on this. Our ICO review will help you understand what this stuff is and how this system works.
ICO or Initial Coin Offering means the following: this is a means that can be the main capital source for startup enterprises. Otherwise stated, this is an unfettered means of crowdfunding focused on cryptocurrency. Today, service ICO is used with the aim to send currency avoiding banks or other government establishments. In other words, the overarching goal of ICO is to pass over the exact and too complicated capital-raising procedures that banks demand.
Here is the example of Initial Coin Offering: this is a form of attracting investment by means of a crypto-token or a new cryptocurrency in lieu of Bitcoin or Ethereum (already existing cryptocurrency). The main target of ICO is to be the main source of new cryptocurrency elaborateness. Today, ICO rating is very high because it turned out to be the main instrument which can modify the whole financial system fundamentally.
ICO – Detailed Explanation of this Process
Surfing the net, you’ll definitely see the terms as “team ICO website” or “social media ICOs”. The whole world is already raising money on this financial tendency but you realize that you have not the foggiest idea what this means and how to deal with this.
Let’s try to puzzle out! Just imagine the situation when a company wishes to earn cash with the help of ICO (a cryptocurrency company is meant). To attain success, they need to create the growth policy, which comprises the following information:
- The meaning of their project;
- How to turn their idea into reality;
- How much money they need;
- How long the company is going to exist;
- The amount of virtual tokens the trailblazers can keep for themselves;
- What type of currency is accepted?
Now, they need to create the ICO campaign (its main goal is to find people who will support this idea and will purchase crypto coins with virtual currency). There are two possible results: failing and successful ones. In the first scenario, cash is given back to the backers and the ICO is considered to be failing. In the second scenario, cash (which is gathered) is used with the aim to complete the plan.
Today, we have the time when ICO is extremely popular. Bitcoin, Ethereum or ICON ratings are too high. To understand this, it is enough to check out the currency rate.
Commonly, the first investors are highly motivated; they obtain the new cryptocurrency and hope that later, they will earn more on its growth. The best instance is the Ethereum ICO project. This project was announced in 2014 and is regarded to be the most successful one on the cryptocurrency market. Besides, Ethereum is deemed to be one of the best ICO limited projects.
Regardless of the fact that there are lots of successful ICO projects, experts consider them to be subversive tools as well. The main reason is that such operations aren’t controlled by the government and other financial authorities. For that reason, if you invest in an unsuccessful ICO project, you will lose funds. Furthermore, funds may never be recovered in the majority of instances. So, if you are going to raise cash on ICO projects, you ought to be very attentive because nothing depends on you. Mostly, everything depends on your fortune!
We recommends you to check a Peer-to-peer service that works with Cryptocurrency and Fiat