- Posted by TokenDashboard
- On April 9, 2018
Over the last few years (specifically in 2017) millions of people have gained a newly found fascination with cryptocurrencies, (such as Bitcoin) Hoping that they may get a “lucky break” and earn a tremendous amount of money by investing in to the cryptocurrency market. In this article I will be providing an in-depth article based on the initial start up of a Cryptocurrency and be focusing particularly on ICOs (Initial coin offerings.) ICOs are a quintessential part of many cryptocurrencies as a part of their “start-ups,” as they can be used as an alternative way to bypass all the regulations that are often required by banks or investors.
What are initial coin offerings?
ICOs is when a cryptocurrency (Generally a newly formed one) sells a percentage of its cryptocurrency to early backers of the project and in return the cryptocurrency will ask for legal tender or other cryptocurrencies (typically bitcoin.) Many times, cryptocurrencies who have initial coin offerings will offer an added incentive to early backers.
Are ICOs safe and reliable?
Some Initial coin offerings have been known to be “complete scams” (according to an article on “recode.net”) “Telegram” may be an example of one of these “complete scams” As the Initial coin offerings of this cryptocurrency begun before a solid business plan was even created. However, many initial coin offerings have been “safe” and some people do end up benefiting from ICOs.
When a Cryptocurrency released their ICOs they often have a “minimum funds target.” This target is the minimum amount of money the cryptocurrency feels they need from ICOs before they start selling to a wider market. If this Minimum fund target is not reached, the early backers of the cryptocurrency will be “refunded” on their investments and the cryptocurrency will become redundant.
Which cryptocurrency should I invest in?
The simple answer to this is to do your research. There are many websites online (icobench.com, evestor.com, cryptogo.com) that can give you clear and concise reasons behind the validity and usefulness of any cryptocurrency you may be interested in. Just make sure to understand that most ICOs end up failing.
How can I invest in ICOs?
Once you find a cryptocurrency you feel you would like to invest in to, visit their website and see what the process for participating is.