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How to participate in an Initial Coin Offering?

But what points should investors consider in an initial coin offering in order to avoid the dangerous areas of the grey area? Here one can fall back on tools from the classical analysis business. This means: to take a clear look at the idea and the market. Two central questions here are:
How big is the market for this idea?

How will this market size be expressed as profit per single token?

The first step is now to assess the concrete market size. What does this idea offer in terms of innovation and what does the market for it look like? Which target groups should this innovation address? This should not be assessed on the basis of one’s own feelings and interests, but rather on the basis of appropriate facts for the assessment. Are there already corresponding developments, but they are not running smoothly? Which groups will have a specific need for the product? This point is crucial for the second assessment and should be accompanied by concrete research of the market.

Here the Bitcoin CodeĀ investment

Subsequently, the optional investment can be assessed more clearly. The product may be a niche product which will find its customers. However, the number of customers will be limited from the outset because the application may already be very specifically designed. This would mean that the gain of each token would also be lower. However, Bitcoin Code can also be an application that appeals to a broad market and thus promises greater profit per token.

All these analysis steps can only predict an expected profit. They do not represent a certainty and they can also be based on premises which are absolutely correct at this point in time but which will prove to be outdated in the future.

How to participate in an Initial Coin Offering?

But how can I become part of a crypto currency that is not yet available on the real market? To be there early, you have to be on the developers’ platforms. Because there the interesting offers are spread out first of all. The companies that want to offer Initial Coin Offering will advertise the corresponding tokens here. Because on these platforms they can be sure to find interested ears. Those who then react quickly can be rewarded in the end. In order to be able to react quickly, one should acquire a basic knowledge and know the market well. All this basically goes hand in hand. First, a basic Bitcoin Profit knowledge of the most important terms and the relationships between the different crypto currencies. Then acquire a basic knowledge of the different interest groups behind the crypto currencies so that a corresponding market analysis can be carried out quickly. All these preliminary activities make it possible to act at a decisive moment.

ICO History
At this point stories from the ICO-History will be shown only very briefly by spotlight. The fastest success so far was achieved by the start-up Tezos, which won 232 million dollars via ICO within a very short time. However, in addition to this rapid income, there are also companies that have already shown that the investment has paid off. One example is the Slovenian company ICONOMI, which earned over 10 million dollars via ICO and thus developed the first “Fund Management Platform for blockchains and crypto currencies”. The blockchain-based sports competition platform First Blood was also successful. It took more than five million dollars in two minutes.
However, in addition to these success stories, all of which bring a successful application onto the market after an ICO, there are also the stories in which no functional application came onto the market in the end. One has to distinguish between the offers, which are created as fakes right from the start and take advantage of the grey area of the market, and those committed projects, which fail due to technical imponderables.

How does an ICO work?

If a start-up company in the field of crypto currencies is pursuing an innovative idea and needs money to develop it, it can find interested investors with an initial coin offering. The start-up basically brings a new crypto currency into circulation. A certain volume is given to loyal employees and supporters. However, these tokens are not comparable with stocks, but rather with coupons. You finance the project – usually by making a deposit via Ether or Bitcoin. However, the tokens can also be equivalent to a voting right via the DAO (short for decentralized autonomous organization). This means that you can buy a voting right by token and have a say in the digital organization and its development. What exactly the corresponding initial coin offering offers the investor should be carefully examined. Also because there may well be fraud in this area. However, the ICO are a trend in the bitcoin world. In recent months in particular, the ICO has risen rapidly. In the first quarter of 2017, ICO had already collected 69 million dollars. Experts assume that this trend will continue and that a total of at least one billion dollars will be raised by initial coin offering in 2017.

Opportunities with an Bitcoin Code ICO

As with any classic investment, an ICO hopes that the investment will pay off for you. In concrete terms, this means that the token of the planned crypto currency is worthwhile once the project is established. An ICO offers young companies and developers without many contacts https://www.scamcontrol.net/bitcoin-code-review/ an Bitcoin Code opportunity to finance their projects without venture capitalists or angel investors. If you have enough idea and a good hand in choosing your ICO, you can actually become part of the next big coup with your token. Since experts believe that the crypto currencies have a rosy future overall, such an investment can pay off at this point in time. Past experience has shown this on many occasions. While e.g. a Bit Connect Token was worth approx. 1.84$ at the ICO, its value today is over 60$ (as of 02 August 2017).
More realistic than dreaming of a big profit, however, one should choose interesting projects that promise added value for different groups and invest in them. Finally, the experience of the digital market shows that the profit margin is relatively low for most projects. The few exceptions that exist at regular intervals can only be found with experience and good intuition. In between, however, there is nothing against smaller investments in interesting projects like Bitcoin Code regarding the crypto currencies.

Risks of an ICO

When talking about the chances of an initial coin offering, the risks should also be examined. The voices urgently warning against the initial coin offering are mostly those experts who are generally critical of the crypto currencies. For them, the undefined grey area of investment in a crypto currency is legally too unclear and thus a risk for investors. These voices are always opposed by experts who tend to see the chances of the crypto currencies and see an option in an initial coin offering to be part of it.
However, the risk for investors naturally lies in the grey area, which also allows dubious providers to seek investors for sham developments. As always, each investor is responsible for his or her own research before making an investment. If ICO continues to establish itself – as the experts of the crypto currencies forecast – the market will certainly be better monitored. Until then, each investor is simply in the greater responsibility to inform himself comprehensively and to make a well thought-out decision.

ICO – Initial Coin Offering

ICO – Initial Coin Offering – digital crowdfunding. The digitisation and democratisation of banking is constantly evolving. There are some terms that keep falling in connection with bitcoins. One of them is the Initial Coin Offering or ICO.

Let’s be clear: What is an Initial Coin Offering (ICO)?
Are ICO’s the same as IPO’s with shares?
How does an ICO work?
Opportunities with an ICO
Risks of an ICO
What things should you be aware of before investing in an ICO?
How to participate in an Initial Coin Offering?
ICO History
upshot
Connoisseurs of the American stock exchange immediately notice the conceptual similarity with IPO, the Initial Public Offering, i.e. the American term for an IPO. But the exciting question remains: What are ICO?
Are they related to the American stock exchange? How do I as a user have to imagine the overall interrelationships?

Let’s be clear: What is an Initial Coin Offering (ICO)?

To put it straight: ICO has no connection with the American stock exchange. To make this clear, many of the initial coin offerings are increasingly referred to as token sales. On the one hand, this calms the stock exchange supervisory authority and, on the other hand, creates clarity for the user. However, there remains a similarity between an ICO and an IPO. An ICO is an opportunity to become part of a company operating in the field of digital currencies through an investment. An initial coin offering is a kind of crowdfunding, but in a hermetically sealed digital world. The companies are basically always working on the further development of digital currencies and their environment, such as the development of smart contracts. The investment supports this development and gives the company the opportunity to advance its research. Critics of the Initial Coin Offering complain that it is not quite clear what exactly the investors would legally acquire. This is clearly defined for common investments, such as an IPO. The ICOs lack such a definition. However, such a definition is difficult to maintain with regard to the investment object. To protect oneself from lawsuits, the legal definition of companies that work with ICOs is: from a legal point of view, nothing is acquired.
What is an ICO?

This is a very similar concept to an initial public offering. The term is often used in connection with token sales and is a form of crowdfunding. Both terms refer to a financing option that gives investors access to a future feature of the financed project; however, the project will not start until the future. ICO Initial Coin offering – Definition Wikipedia

Are ICO’s the same as IPO’s with shares?

This point is the decisive difference between an ICO and an IPO. An IPO clearly defines what the investor acquires and what rights he has. An ICO remains spongy in this area. It is an investment in an industry that is still too early to say clearly what it will bring. For the investor, a token sale is basically a kind of digital token.
These are made more attractive by the current development within the crypto currencies and the hopes associated with these developments. Bitcoin are called Blockchain 1.0, the further development Ethereum as Blockchain 2.0 and currently there is speculation for a revised version, which makes the ICO even more attractive. In it the experiences made from the other blockchain should have been used and some of the usual problems, like the vulnerability and the speed of the processing, should have been eliminated. These are all steps towards a blockchain that opens up further possibilities.
However, the majority of ICOs are concerned with developments within the existing block chain. They often build on the Ethereum blockchain and are called Dapps. The goals of the companies can be very different, such as the development of an Internet browser based on the block chain called Brave and its ICO Basic Attention Token. In summary, an ICO is therefore an investment based on a belief in a digital future without a clearly calculable outcome.