What is ICO
Initial Coin Offering — a launch by some project of its own coins (cryptocurrency), that are intended to pay for its service in the future.
Reasons to invest
- You may benefit from their resale if you think that company’s tokens will be successful in thefuture and their price will greatly increase.
- You may also use coins to pay for the company’s services, often at a lower price.
- To simply support the project that you are interested in.
Investments in ICO
Investment in ICO is a deal that is based on trust. You should examine the project that you are interested in and understand what are its chances of success. Similarly to the crowdfunding, the project and its product may not even enter the market or may enter it in a way that differs from the one you have expected.
- There is justification for launching ICO and creating its own cryptocurrency
- The action plan for the development is published online.
- The company has an open alertue with investors and stakeholders.
- There is a clear understanding of the necessary funds for the project.
- The company owns at least 20% of its tokens and doesn’t sell it in the first few years.
- The information about key actors of the project is published online.