Crypto Currency has garnered the attention of almost everyone who can access the internet! Another buzzword in the recent times is “ICO“. ICO is the abbreviation of Initial Coin Offering. It is an alternative fundraising mechanism in which blockchain startups issue their own crypto tokens and sell them in exchange for BTC and ETH. Users, in their turn, can either spend digital tokens on the platform or sell them later on exchanges at say, 3 times to 100 times the price. Tokens are basically like vouchers that you can exchange for goods or services on a certain platform.
In this article we will understand how the entire ICO process works and also, how platforms like ICOUP will help the developer and the investor community.
STEPS BEHIND AN ICO
Announcement : ICO typically begins with the announcement of making the project by the developers. It helps in generating hype and interest in the project.
White Paper : Developers then create a white paper. A white paper is typically a document issued by the developers which highlight their project and the specific features of that project so that it attracts the attention of the potential investors. Whitepapers are generally written in an academic manner and the specific purpose is to entice the investors by showing its potential and features.
Run the white paper in the community : The developers will then run the white paper through prominent members in the blockchain community to get their backing.
Tokens : Developers will create the tokens which they are going to exchange for Bitcoin or ETH in the token sale. Developers decide the limit to the number of tokens and the amount that they want to charge for each token. Also, Setting a cap on the number of tokens is necessary.
Timing: Developers also need to decide a time at which they want to hold their ICO. Selecting the time, and the amount of time it runs for is very important.
Last but not the least, the developers choose a platform where they can advertise their ICO. Soon to be launched, ICOUP is one such platform where developers can advertise their ICOs and investors can make an informed decision and choose from the best.
There are a ton of ICOs out there, with every single one of them promising huge returns and useful perks for potential investors. But before you get carried away and start sending your hard earned money to every single project out there, remember that many, if not most of those projects will inevitably fail or will turn out to be a scam.
ICO investment can be really tricky for many. ICOUP will try to solve the problems of an investor by listing hand curated ICOs on the ICOUP platform after doing thorough technical, financial and social analysis. Moreover, the platform will also have the option of taking user votes into consideration for each ICOs. In order to provide quality analysis to the users, ICOUP will provide a score for the listing.
Moreover, every ICO accepted by ICOUP can be analyzed by potential investors based on various parameters.
For Developers, many a times, promoting your own cryptocurrency can be very difficult. Moreover, the cost of promotion can be prohibitive. ICOUP will provide crypto currency enthusiasts launch their ICO and get noticed immediately. They can also promote themselves on the platform through banners, posts and mentions on the newsletters after paying a nominal charge. And obviously, they can use crypto currency to make their payment.
ICOUP connects all the information related to blockchain projects and allows the members to rate any project. ICOUP gives the power to the investors to make the most informed and smart investment decision.
It is important to note that unlike an Initial Public Offering , investing in an ICO won’t result in you having an ownership stake of the company. You’re basically gambling that the currency you pay for now will increase in worth later and ultimately make you money.
From an investor’s point of view, it is important to be cautious before making an investment. They should make sure that the developers are not anonymous. If they are, that is as red of a flag. They should also know about the development team and the advisory board. ICOUP will, in a bid to protect investors from fake ICOs will ensure that the the projects listed on the website are thoroughly checked.
At an individual level too, one can focus on relevant cryptocurrency experiences of the developers, previous ICOs they took part in and the impact they had on the project.
ICOs over the last few years have attracted many investors. Undoubtedly, currently, ICO is the rockstar of the investment world. The concept is extremely seductive and has garnered the attention of investors, big or small. The idea that anyone anywhere can get the financial backing they need in an unregulated manner is a welcome idea for all. However, for both the investor and developer community it is important to remain alert as it is an evolving field and platforms like ICOUP will try to help both these communities through the various safety mechanisms they will offer.