Initial Coin Offer (ICO) it’s the new IPO if you have a new business idea you can reach funds with an ICO, piece of cake ICO it’s an alternative form of crowd-funding. You offer your stakeholders the possibility to invest in your innovative startups or companies trough token release. The token investor can have an income by selling tokens and earn through the differential value from start to markup value.
Why should a business man start an ICO?
At the first look ICO has two important features:
I. Low level of bureaucracy structure;
II. Easy to start concept.
Bureaucracy structure it’s simpler than an IPO, because “Big Monsters” ( banking authority actors) are studying how they can attack the procedure to earn they too, but they already haven’t.
Every one can launch an ICO if you have a startup idea you can create an ICO fundraising.
Investing in an ICO
Investing in an ICO helps to launch a specific company product, believing that the value increasing in the future. The company tokens can be exchanged in the future after the tokens values increases. In 2014, Ethereum sold coin trough its ICO around for 0,30 c. US/token. The company release it’s definitive platform in July 2015. After the ICO race, the price of each token significantly increases until 700€ each one. Obviously, Ethereum is an exception, not the rule.
Traditional startup investment can give an important gain with an exit after 7 years medium, an ICO can give the same value in 4 months. With ICO it’s possible to disinvest your position immediately after ICO starts with the currency called exchanges. Regulations are coming so you should make quicker your ICO race innovative startup or company.
How Can I judge an ICO safety?
First screening project rating. The seriousness of the company team it’s in the first place. Fintech.review advise you to take a look at rating ICO sites that make an accurate review of this topic, also these sites help to get in touch with the ICO supporters community projects. You could search the feasibility project on telegram, twitter or reddit.