To most people, an ICO is when investors are offered some units of cryptocurrency in exchange for cryptocurrencies like BTC or ETH. ICOs have been used to fund start-ups if there is a demand for the cryptocurrency. Normally, investors spend digital tokens on the platform or sell them later, on crypto exchanges at a different price.
Since 2013, ICOs have become a popular fundraising mechanism for projects, as investors like to get in on the ground floor, as it were, to benefit from the potential of the cryptocurrency taking off.
While some ICOs lead to technologies like Ethereum and Ripple, not all of them are trustworthy. Investors should do their research about the ICO project to make sure they’re not scams before diving in. Get started by researching the following:
- The idea behind the project – What problem does it solve? Projects that can solve some big problems attract more investors towards them.
- The website – How professional does the website look and if it includes all the important content like an FAQs section that covers the important questions about the project.
- Authentic whitepaper – It is not wise to only depend on word of mouth. A whitepaper should contain all the essential details about the project.
- The community – Check the community surrounding the project by following their Telegram and other social media accounts. These platforms can also help answer questions about the project.
Hopefully, this article provides a starting point for your research. Good luck on your future investments.
Check out www.gallactic.io for GALLACTIC's upcoming crowdsale on 1st October 2018.