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.