An ICO is an uncontrolled way to increase the funds for a new cryptocurrency startup which will be resulting great benefits of investing in ICO. In the process, the percentage of the cryptocurrency is available on offer to initial supporters in terms of transfer of cryptocurrencies or legal tender.
Before offering ICO, the company releases a white paper mentioning about the project, objective, money required to undertake, type of money accepted, time duration of ICO campaign, virtual token kept with them, and objectives to be furnished by the project when it completes.
These coins are called tokens which are just similar to a company’s shares to investors in regards to IPO transactions. If the collected money from the ICO is not sufficient to meet minimum money requirement, the money is transferred back to the investors and it is considered that the ICO was unsuccessful.
If the collected funds meet the requirement in a mentioned time frame, the fund is utilized to complete the scheme or to launch new schemes.
Investors are encouraged to invest in the IPO so that the planning can proceed further and investors get a higher value for the coin as compared to the price at which they purchased it. While IPOs have investors, ICOs have supporters who are interested in funding and motivated to get a good return on the investment.
Advantages Of Investing In ICO
The first ICO was started in July 2014 by Ethereal. Even though it was the first time, the ICO collected 18M supporters to launch and then it was established.
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People were attracted towards this new type of digital currency and wanted to test their luck with the new technology. In the starting, the project was defined in white papers by a developer who already had an experience in bitcoin.
As the first ICO was successful and inspirational, the other developers got attracted towards more of ICO launches. Consequently, more ICOs were launched after that year and many more are in the line as well.
Currently, Globalipay has started the pre-sale of its tokens, while the main ICO will release from 30 June 2018. Here are the benefits of investing in ICO.
1. No Boundaries
ICO is generally launched for international markets. A token sale gets attraction and opens for business across the world than the equities as their scope are not that wide. The international base increases chances to grow 20-25 times more in the given buyer range.
2. Decentralised System
The token introduction can be initiated in any country of the world. The decentralized system makes no involvement of the central government and banks and it creates further individuality. The investors likewise get more benefits than the traditional banking.
3. A New Business Model
The ICO launch model renders a technically practical solution for tech companies where initial users get an equal portion of the wealth and the company gets the success.
4. ICO Mechanism Advantage
The ICO mechanism is built with many useful features. ICO coins can be consolidated or subdivided. Coins are easy to trade for selling and buying at cryptocurrency exchanges.
5. Early Coin Purchase Matters
Funds under ICO are transparent and verified as well provide clarification about where the ICO funds will be spent. In the starting phase of the ICO companies, the early supporters have more liquidity and high chances of the rapid capital growth.
6. Best Investment Returns
For the investors who are looking forward to investing in new ICO, this is a good choice to get early and fast benefits. As the supporters increase, the fund raises respectively and so the investment as well.
7. High ROI
For the supporters who invest in ICO, the chances are quite high to get the success as the ROI stands high for the relevant investment.
With the successful track record of ICO transactions, it is also considered as a disruptive innovative tool of this generation.
As all the ICO or crowdsale campaigns are not genuine, the investors need to tread with cautions. As these firms are not controlled by some authoritative financial ruler such as SEC, the chances to lose the funds are high as well as the fraudulent initiatives are not trackable.
So before investing in a fund-raising operative, it is advisable to research well about it before buying it unknowingly. If you are attracted to ICO and want to invest in it, the Globalipay is available as an ICO-presale starting from 20 May 2018.