What is an Initial Coin Offering (ICO)
An initial coin offering (ICO) is a fundraising method that trades future crypto coins for cryptocurrencies which have an immediate, liquid value. Usually, a percentage of the tokens is sold to ICO participants and a percentage kept for the company’s needs (private investors, etc. Terms differ from one ICO to another). An ICO allows both big and small investors to fund the projects they like. The recent year carried thousands of successful ICO stories. The motivation for the project is obvious. The motivation for the investors of the ICO is that the price of the token would be higher (or much higher) than the token’s price during the ICO.
The highest value raised by an ICO is Tezos, which raised a record breaking $232 million in less than a month! Many factors influence the chances for a successful ICO and they can predict whether it will be valuable for its investors.
At this point it is right to mention less successful stories like the Mycelium ICO. Its team members just disappeared after raising the money, and later it was reported they used the funds to pay for their own vacation. The lack of regulation might be one of the reasons it happened. Just weeks ago, $7 millions were stolen as CoinDash’s ICO started. Right before the start of the token sale, their website was hacked and the ICO wallet address was changed to the hacker’s address.
* Important warning before we start: ICOs are a high-risk way of fundraising. Never invest anything you can’t completely afford to lose. Keep in mind that due to a lack of regulation, you will have difficulty getting back your lost money in case of any failures.
NOTE: Investing funds and compounding for a period of 52 weeks automatically qualifies her client’s portfolio ICO investments. We allocate a certain part of your principle to invest in ICO’s and send your profits and new currency together with the documents at the end of the compounding period.