Definition of ICO and Important Tips to Consider
For this time, we will try to explain about the ICO crypto that is rife this year.
Many people, especially new players in the world of a crypto coin, are interested in ICO, and we hope that the benefits of the ICO they follow need to be understood by the ICO first.
ICO stands for Initial Coin Offering, which means a start-up or team that wants to run their project and use the ICO method to get funding.
WIth participating in ICO, we will send funds through the payment method that already specified then we will get a token.
Through the ICO method there are many advantages that can be obtained:
- The project that is being planned can be quickly implemented and tried whether the project is successful or not.
- Can encourage develop technological through ideas that out from an idea of new start-ups
The downside of this method is:
- There is nobody or organization that regulates this, so if the project that we support through ICO is not successful, we can ensure that the coin/token that we get from ICO is of no value
- There are many people who are greedy in this world, so there are many people who are not responsible, with use ICO to get money from investor then they carry out or SCAM
Well, if you are a person who intends to participate in this ICO, or want to invest money with buy token trough ICO, hence you need to pay attention to a point:
- Do research or extract information about the project
Starting from who are the people in the project, if you often see ICO on the ICO LIST, there you can search for ICO that you think has the potential and unique project and will good if the look on Team section.
Important Tips To Consider Before Joining ICO
ICO is an alternative way where there is a low risk, high reward. But how do you minimize the risk of choosing an ICO? There are many factors that need to be considered in choosing ICO to invest. The following important tips that must be considered in choosing ICO we will giving useful tips below
Realistic ideas are needed to be implemented and must be able to solve problems. This should be used appropriately in using the blockchain, not just some ideas that didn’t work in the past, and now look good to use on the blockchain.
It takes a team that is experienced enough to be able to carry out this vision. In realizing a vision, a team that has high credibility and quality is needed so that the idea can be implemented well.
How do you find out whether the team is experienced and has high credibility and quality? You can see their LinkedIn profile, where all lists of employment and education history are listed.
An advisor must be senior enough to have a positive impact on the project. They must be registered in LindkedIn’s profile, which can prove their experience and connection with the project that they have handled. Advisor profiles with connections less than ‘+500’ listed on LinkedIn can be said to have low credibility.
Hard Cap is the maximum amount of funds that a project wants to achieve through the ICO stage. If the related project has succeeded in raising funds for a specified number of Hard Cap limits, the ICO stage will be terminated even though the ICO period has not yet been completed. Usually, a project will determine their Hard Cap limit as high as possible to get fresh funds for the smooth development of their project.
One that has a major impact on investment is Hard Cap. If an ICO has a large hard cap, it can increase the risk of your investment prospects. Know that in the world of cryptocurrency, the majority of players do not have expertise in the field of investment, many of them do not pay attention to Hard Cap when making investments, for example:
ICO A and ICO B are engaged in the same field, namely Lending Platform,
A has a $ 40,000,000 USD Hard Cap for their ICO
B has a $ 20,000,000 USD Hard Cap for their ICO
When both enter Exchange X, the two Coins have a $ 60,000,000 Market Cap.
Which one is more profitable for you?
Although the Hard Cap of an ICO is important, it is not the only indicator of whether an ICO is profitable, it needs to be considered by the Team, Partners and other information such as Competitors to determine whether an ICO has evaluated itself too high.
Products / Goods
Products that are already running are a plus value, but some ideas that are too new and ordinary can also be very easy to understand so that they have a positive impact on their whitepaper.
Target / Road Map
Consider whether a roadmap looks realistic or not, is it too ambitious? Is it possible? It would be better if a roadmap was started a few years ago.
The prospects of their investment profits can be seen from the products they offer, and compare them with their competitors. Which brings more profit opportunities?
The value of selling tokens has a benchmark, normally the sale of tokens is 50%, less than that can be categorized as having a risk, but if more will be better.
By hiring a professional marketing can increase the confidence of investors to invest in the company. This is one of the added values that has a big impact. Marketing methods are also not limited by writing articles on well-known websites, airdrop, bounty and also videos.
A bonus is important in making a decision to buy an ICO for me. Many people often don’t pay much attention to bonus issues. Of course, the Presale and the Private sale bonus are very important to know before deciding to buy an ICO.
Coin A is doing an Initial Coin Offering,
Person A gets a Presale Bonus of 25% and an additional Private Sale bonus above the Presale Bonus of 50%
Person B gets a Presale Bonus of 25% and does not get a Private sale Bonus,
Then the total bonus of person A = 75% (175% of the total Coin received with the value of an investment)
Then the total Bonus of person B = 25% (125% of the total Coin accepted by the investment value)
Often people are confused as to why an ICO when going out to exchange costs under the ICO, this happens because people who participate in Private sales still have a profit, so they can sell coins at a bottom price and still get profit.
Usage of Coins / Tokens
Each Coin or Token has a different function, having a Coin / Token does not mean you own shares in the Coin / Token company, but there are some ICOs or Projects that have already run token functions that share dividends with their Coin / Token holders. Note that the Coin / Token function is very influential on the prospect of the ICO.
The final word
Some tips that have been mentioned above are some tips on things that must be considered in choosing ICO, but every investment decision is the decision of each individual and his responsibility is on each individual who makes the investment, remember to always “Do Your Own” Research “.
Especially in the world of online investment, there are many ICOs that scam at the expense of investors, so be careful when choosing ICO sites to avoid scams