The Latest In Cryptocurrencies!
The entrepreneurship world is constantly evolving and adapting to the new sophisticated needs of the current times. For many years, the collection of capitals was the basic tool entrepreneurs used to finance their projects. In the digital world there is a new character, the ICO’s, which are changing the way investors used their capital in the cryptocurrency market.
If you want to be part of the cryptocurrency field, you need to know more about the new inventions, obstacles and tools available. That’s why we are going to share with you everything you need to know about the ICO’s. Discover why are they becoming so important for the financial system of cryptocurrencies.
1. What are ICO’s about?
The ICO’s (Initial Currency Offer) are a hybrid between the recognized crowdfunding models and collecting of capital. However, the ICO’s take place in the cryptocurrencies market. It’s a new method, developed by the same people who created the blockchain technology, with the purpose to capitalize their own projects.
In this case, creator made the collection to develop a new project related with the creation of a new cryptocurrency or “token”. In this manner, the creators establish the value of the new digital currency in relation of one that already exists, such as Ethereum, Bitcoin, etc. The first investors can receive many benefits if the project is successful, which means a higher value in the new token created.
2. How to Invest in the ICO’s ?
First, to invest in an ICO you need to know when it starts. You can receive notifications from ICO’s offers through many mediums. From social networks, WhatsApp chat groups or Telegram, to advertising banners and any other contact. However, other more formal platforms such as websites also announce these offers.
Once you know about the existence of an Initial Currency Offer (ICO), you will have the option to invest in three different stages of the project:
a) Pre ICO , also called Pre Sale:
We are talking about the initial stage. There you will be able to buy tokens at a lower price in relation with the value of the token once developed. The purpose of collecting money at this stage is to finance the initial costs, when the project is still being prepared. Collaborating at this stage can even give you an advantage of 40% in the price of the token.
b) ICO’s , Token Sale or Crowd sale:
In this phase, the announcement is ready, starting the initial cryptocurrency’s offer. In this manner, we have the opportunity to acquire a determined amount of tokens related with the ICO’s project, paying with other digital currency such as Bitcoin or Ethereum. This stage will determine the initial capitalization of the project.
Once finalized the ICO’s phase, you can acquire the new cryptocurrency through different exchange platforms that includes the project into their markets. Clearly, as long as the project is successful, you will receive more benefits the earlier you invest. The most important is determining which will be the ICO’s with the best future to invest at their initial stages.
3. Is there any risk to invest in ICO’s?
The risks involved in ICO’s happen during the planning of the project. This means that you have to be very careful, as in any other investment, to put your trust and money into a project that is well supported and planned, with respectable developers. Generally, people launch the offers when the project has just been defined. As any other new entrepreneurship, involves some risks of execution.
4. The position of capital and risk’s funds in front of the ICO’s:
Even knowing the risks of this process, there are still many investors very interested in ICO’s due to the popularity originated by the many successful cases and the high earnings of those projects. We can mention examples such as Digital Pantera, the first Bitcoin enterprise of the United States, which bases its investment in Blockchain technologies. Fenbushi and Venture Capital are also other enterprises who have shown support to this system.
People is so interesting in everything related to cryptocurrencies including ICO’s. This model has changed all the paradigms in the financial system and it means a high technology revolution to the field. Besides all the risks involved, investors know that the financial future is moving among the blockchain technology. It has eliminated the authority of centralized organizations, improving the wealth distribution in the entire world!