Monday, 5 February 2018

Why investors should be careful with some ICO campaigns

Startups are nowadays using Initial Coin Offerings to bypass the regulated and rigorous process of raising capital mostly required by banks or venture capitalists. In a typical ICO campaign, a good percentage of a cryptocurrency is sold to an early backer or investor of the project. The investor or backer in exchange gets a legal tender or any other cryptocurrency. When cryptocurrency startups want to raise some funds through initial coin offerings, the startups usually create plans on whitepapers that state what the underlying project is all about and the needs the project is expected to fulfill once completed.
In addition, the plans state the amount of money needed to take on the venue, the duration of the campaign, the type of currency accepted and how many tokens the backers will keep. An ICO campaign usually attracts supporters and enthusiasts of a startup’s initiative by buying the available cryptocoins using virtual or flat currency. These cryptocoins are known as tokens and act the same way as shares of a company, which are sold to investors during IPO transactions. In a typical ICO campaign, a startup can either raise the funds it is looking for or fail to raise the funds. For more information visit website #blockchain

No comments:

Post a Comment