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 Code 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and they can also be based on premises which are absolutely correct at this point in time but which will prove to be outdated in the future.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.
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.