How to Invest into ICOs: A Discerning Guide for the AstuteMarch 21, 2018
ICO, or Initial Coin Offering, is to blockchain technology what IPO (Initial Price Offering) is to the stock market. Following the explosive growth of the crypto industry, ICOs have become a crowdfunding vehicle for startups, enabling them to source for funds from the global community.
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IPO remains the only way for a private company to go public and during the 1980’s/ 90’s, many of the fastest growing companies were able to leverage it to raise capital and further the growth of their establishment. The crypto industry spinoff of this is the ICO. However, unlike an IPO that requires that the company going public must not only have a product/service on ground, but must also have been in existence for a number of years, ICOs have no such requirement. As long as you can publish the details of your ICO online, you can launch your own token sale.
ICOs also differs from IPOs in another way – with an IPO, part of the company still remains yours as stock, while an ICO, lets you own digital coins issued by the company. The usage of this emerging form of currency tends to be restricted to the ecosystem issuing it. However in recent times, some currency have started to support cross-ecosystem usage. Nevertheless, the increasing demand for these currencies has been known to raise their intrinsic value sometimes by thousands of percent. This has resulted in a stampede of investors into the industry, all looking for the next ICO to ride to the moon.
To better illustrate the potentials ICOs afford investors, S&P 500 highest performing stock 2017 rose by 132%, while one of the top 20 best ICO performers grew by over 20,000% in the same year. Of course, it’s difficult knowing which ICO will perform well. However, some of the following pointers goes a long way in narrowing the list:
Concept: Does it address a real world problem and solve it?
A shelf can hold just about any product placed on it, but that doesn’t mean the product can be used by everyone that sees it. The same goes for ICOs. It is very important for potential contributors to any ICO to not only analyze the problem and its market size, but to also visualize what these solutions could translate into in the long run. This will help the contributor figure out where the project would likely wound up, where competition may spring up from, and how the ICO can steal some of the market share.
Team: First name first
The internet has made it possible for anybody to become whoever they want to be, simply by slapping someone else’s picture on their profile, while wearing another person’s name tag. With ICOs raising over $3 billion in funding last year alone, the industry has become a favourite haunt for scammers looking to fleece the gullible. This is why it is very important to research both the team and advisory board and see if their experiences qualify them to undertake such a project
A Whitepaper has become a de facto standard for any cryptocurrency offering. Any project without one is most likely a scam or a cash grab. A whitepaper should consist of the following:
- Overview and Executive Summary
- Market research and analysis
- Product details and summarized architecture
- Roadmap and Financial forecast
- Structure of token offering
It is very important that the Whitepaper is read carefully and any particular questions are directed at the management team.
Different ICOs have different cost of development. However, what is important is if the cost is realistic enough and what the minimum and maximum amount required to develop the product. Having no minimum or maximum amounts raises a lot of red flags about the capability of the team and their ability to deliver.
An ICO that has successfully raised a part of the funds require to develop the product through private funding shows that there’s not only a demand for such a product, but also confidence in the team’s ability to deliver. A good example of this is ImmVRse. The blockchain-based VR platform has successfully meet its private sale commitment and the highly experienced team, comprising of IT, Finance, Marketing, Legal, Blockchain, and VR specialists are gearing up for the company’s ICO.
Recent market research from various sources, including Goldman Sachs and Gartner has projected the VR industry growth to between $80b to $110b annually. ImmVRse is disrupting this industry through a groundbreaking platform that empowers content creator on a decentralized and secure, digital VR content sharing ecosystem.
Always research ICOs before investing and do not forget, invest only what you can afford to lose.
To learn more visit the Website: https://immvr.se/
Meet the Team: https://immvr.se/team
Chat with us on Telegram: https://t.me/immvrse
Read the full Whitepaper: https://immvr.se/whitepaper/
Connect on Facebook: https://facebook.com/immvrseetergostincar/
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