Nowadays, it is rather rare that a person does not know what cryptocurrency is. Indeed, electronic transactions are more and more popular and the growth of crypto-currencies is just as incredible. For all those who invest in this type of currency such as the famous Bitcoin or Ether, the returns are very satisfactory. These fundraisers are called ICOs, in other words, Initial Coin Offering. So, you wonder how an ICO works and what are the different elements that it can involve? Discover all that is not to be missed on this new investment that is all the rage.
In recent years, electronic money has clearly shown itself to be an investment that can only be beneficial. The returns it offers are exceptional, whether you're a big investor with experience or not at all. The two main crypto currencies that are currently raging are Bitcoin and Ether.
Thus, more and more people are investing financially in this type of program. Among the investments that are often made in the market, there is the Initial Coin Offering. The latter can be considered as the equivalent of the Initial Public Offering, but more suited to the world of the famous blockchain. The ICO is generally used for the purpose of financing a business and remains to this day, very popular with the general public.
You have probably already heard about crowdfunding, also known as crowdfunding in English. Thus, the Initial Coin Offering is a form of crowdfunding since it allows to raise the funds of a company. Indeed, when relying on a project that undoubtedly depends on the technology of blockchain and by that, crypto currency, it is clearly recommended to opt for the ICO that will help you to direct your funding properly.
It should also be noted that to be able to finance via the ICO, certain elements must be analyzed in a scrupulous way. Whether it is the White Paper (file containing all the details of the project in detail) the smart contract (technical document of your ICO) or the issue of tokens or tokens, everything must be taken into consideration before attacking your funding.
What are some of the things you should always pay attention to when using ICO?
Given the success generated by crypto currencies, it is clear that many scams are designed on a regular basis to defraud thousands of people. By this, to avoid getting caught by these scams, you must ensure that certain points are respected. Here are some ideas on the subject:
Please do not neglect reading the smart contract as white paper before embarking on an ICO. These documents being of paramount importance, it is essential to call on someone qualified to consult them properly.
Follow the information of the company that performs the ICO in question.