Ankur Agarwal is an ICO consultant and cryptocurrency expert. Today he shares some common ICO Frauds and myths which are revolving around us with misleading context.
As we have seen a lot of scams in the name of cryptocurrencies, there have been questions arising around ICO’s if it’s a kind of fraud to glue the public to invest in scam currencies.
ICO’s are initial coin offering to a selected bunch of public. It is very similar to IPO’s of the stock market, but in this, a company can do the ICO even with zero capital.
Initial Coin offering is for the cryptocurrencies that have been developed under blockchain technology. The coin is offered on invitation basis and then rolled out in public for unlimited subscription.
Well, the answer of whether it’s a scam or not can’t be known at ICO stage, but one can make the prediction looking to credentials of the company launching the ICO, its history, and interest of people in the first week of its launch.
ICO’s are not to be blamed or if the currency turns out the scam and the investor’s in the modern generation need to be rational enough to find out if the coin is worth investing! Some investors invest in ICO for about a month and withdraw their earnings because the value of the currency rises by a min 100% in most of the cases.
Most of the companies also offer free coins in terms to gain people’s interest and trust towards the currency in the long run. This kind of strategy has helped increased positive response by the companies towards their ICO’s, and it helped them to get more investors on board after the successful launch.
The image of an ICO depends on the marketing strategy it adopts and also the legal ramifications regarding the launch of a coin in a particular country. Government agencies have been considering digital currencies and ICOs especially.
The careful wording has turned into a critical part in any publicizing effort. Control can change by nation and affect an organization’s capacity to raise capital and additionally potentially to disrupt their item improvement.
2017 has been known as the “Time of ICOs,” and it was. In the Chinese Zodiac it was the Year of the Rooster, and the year ICOs ran widespread with little oversight and even less straightforwardness.
The CryptoCurrency market is worth over a trillion dollars, and ever since the current coin’s price has been going down, it’s the ICO’s that have helped the market to stay afloat in 2018. In our regards, it will continue being the same.
ICO as a term has been ruling every investor’s mind for over one and a half year. It has been the trend of not only 2017 but 2018 too, but with increasing scams of currencies, investors buy the coin at its very initial stage and sell it off until it becomes popular amongst the public. It has been the term of trading cryptocurrency in the past one and a half year.
An ICO, similar to a standard crowdfunded organization, has the advantage of a multitude of supporters just this time with the additional system impact of seeing the item conveyed as well as holding tokens that appreciate dependent on use.
This ought to dramatically expand virality picked up from verbal, thus decreasing the requirement for expensive advertising and client acquisition.
ICOs offer an outlet to contribute benefits from Bitcoin or Ether, changed over into a recently propelled crypto token, which like this adds to their shortage driving the cost up and this way making a self-strengthening loop.
Given the perspective of different investors and companies launching ICO’s, it still depends on how a particular economy has taken cryptocurrency in their market.
The ICO’s are primarily used for short-term tradings albeit of regular scams happening, but this still doesn’t solve our question on whether an ICO term is a scam or not. One can only answer the question after looking into the performance of a coin and predicting its life upon those stats. Everyone shall ponder upon and answer the question differently for every coin that has ever gone in ICO, some may turn out to be good, and some may turn out to be a scam.