Initial Coin Offering (ICO) is a buzz term this Summer. You are reading Core Media which means you are probably equipped with the ready-to-spout knowledge of the technical details, but for the sake of total clarity, let’s review.
ICO or Initial Coin Offering is a popular way for a cryptocurrency project (usually still in development) to fund the work they are doing, and a great way to allow early backers, investors and enthusiasts to buy in before the public sinks their teeth into the emerging crypto-creation.
An ICO is also a way to boost awareness of a new token or project because often times it creates a buzz with the company or team name, and it can create a certain feeling of exclusivity. This is especially true for those ICO’s that sell out quickly, leaving a line of salivating would-be investors.
ICO’s are evidently the hottest trend to sweep over the globe’s finest minds, since… Windows. Seriously, most people still aren’t sure what is happening behind the ICO scenes and they likely don’t understand what they are waiting in a digital line to purchase. They know it’s popular in technology circles and they know someone who made huge profits very recently.
What is it with the ICO frenzy?
While it’s tempting to buy into a promise of riches, it’s always best to do your research, no matter how great your neighbor thinks a certain investment is. Read up! You’re in the right place for that. Make sure to cross reference more than one article and to read all available documents before deciding on an investment and remember, once a project has completed their ICO period, the fun has only just begun!
The life of a cryptocurrency depends on the buyers, investors and team who is behind the development of the project. There is fierce competition and the opportunity for scam artists to swindle a bundle of bucks from ready-to-pay investors has never been more concerning, so make sure you do your research before investing. Click here to learn how to avoid scam ICOs.
Remember: just because a new project has shiny, flash-enhanced banners, an announcement on the usual forums, amazing language, and what appears to be good team along with valid investors already pitching into the pot doesn’t make the project REAL or viable.
Read the whitepaper which should explain the goals and purpose of the project. Usually, the project will be a SOLUTION to a real world problem. The company or team should have a fairly clear timeline or at least a method of updating its interested parties as progress is made.
The developers and representatives of any ICO should be accessible to answer concerns and to reassure nervous buyers. Usually, a contact email or slack channel invite would be enough to make the crowd feel at ease.
When deciding where to put your investment dollars, relax and don’t act on impulse. Consult with trusted sources of news, and information and as always, happy investing! Cheers.