ICO is not new anyway but let me explain what we mean be ICO
What is ICO?
ICO stands for Initial Coin Offering, is a way of raising fund for the release of new cryptocurrency.tokens for the new cryptocurrency are sold to raise money for technical development before the cryptocurrency is released.
As a result, the company gets the capital to fund the product development and the audience members get their crypto tokens’ shares. Plus, they have complete ownership of these shares.
Do we have successful ICO?
Yes, there we have many successful ICO.some of these successful ICO are;
What’s in ICO for me?
There are many possible benefits to taking part in an ICO. The obvious one is: you are helping the company launch its product. There is also an opportunity to make a profit selling ICO tokens after you’ve purchased them.
For example, during the ICO of Ethereum in 2014, the tokens were sold at a price ranging from $0.3 to $0.4 per token. After the project’s main platform was released in July 2015, the price of each token has risen significantly, reaching as high as $19.42 at one point. This means that some of the luckiest participants were able to claim an ROI of over 6000 percent.
However, you should keep in mind that any profits aren’t guaranteed. An ICO campaign may fail and in that case, all contributions will be returned to their senders. Even if it does succeed, there is a chance that the developers will not be able to deliver a final product and the price of tokens will never go up. This is a risk that all ICO participants have to take into account when they decide to contribute to any campaign.
Won’t the owners of the project just run away with my money?
There are little to no guarantees enforced by the government, depending on the country. However, by now most companies that have launched their ICO campaigns, impose restrictions on themselves to provide sufficient trust and transparency for the contributors.
How to spot a possible ICO scam?
There are several signs of a potentially fraudulent ICO: anonymous developers, the lack of an escrow wallet and unclear or unrealistic goals are among the most telling ones.
The cryptocurrency community has had to deal with a number of scam ICO campaigns over the past several years. There are some red flags which are common for most of these campaigns and by detecting which you can avoid potentially dangerous companies:
- The developers of the project are either anonymous or unknown to anyone in the community. If the people behind an ICO don’t put their reputation on the line, they are more likely to feel safe while pulling a scam.
- No escrow wallet for contributions. If all keys to the contributors’ donations are concentrated in the hands of the owners of a project, nothing is stopping them from running away with the money.
- Unrealistic/unclear goals. When a project doesn’t have a clear-cut, realistic roadmap, it means that the people behind it don’t know what they’re doing, at best. At worst, they don’t really care because they aren’t actually going to do anything.
- Lack of transparency. Today, showing work-in-progress stages of your project to the audience is considered an industry standard in crypto. If the developers don’t release code snippets, demo/beta versions of their product, behind the scenes videos or other kinds of reports on their progress, it is possible that they don’t have anything to show at all.