What is ICO?

What is an ICO?

Types of ICO

  1. Private ICOs: Here, only accredited investors can participate in the ICO. The company can thus enforce a minimum investment amount.
  2. Public ICOs: Public ICO targets the general public. It creates room for anyone who would want to be an investor.

How does an ICO work?

  • Fixed supply and fixed price: A company may set specific financial goals, which means each token has a fixed price and a fixed total supply.
  • Fixed supply and varying price: The amount of funds the ICO receives depends on each token’s price.
  • Varying supply and fixed price: ICOs may have an irregular token supply but a fixed price. Here, the amount of funding received by the investors determines the supply of tokens.
  • The goal of the project
  • What needs that the project would fulfill at the end of the ICO?
  • How much money does the project require?
  • The company will accept the type of currencies (BTC, ETH, USD).
  • The length of the ICO campaign.

Can you launch an ICO?

Photo by Kanchanara on Unsplash

How could you avoid a scam ICO?

  • Research the people behind the ICO before investing in it.
  • Make sure the product’s founders already have a verifiable history of success with cryptos.
  • Be sure about the project’s goals through their websites and white papers.
  • Go for a transparent company. An organization that wants investors should have 100% transparency.
  • Study the ICO’s terms and conditions.
  • Ensure the ICO funds are sent to an escrow account. A wallet with several access keys is more secure and less likely to be a scam.

What should you have before investing in an ICO?

Photo by Bermix Studio on Unsplash
  1. Wallet One holds established crypto like Ethereum or Bitcoin
  2. Wallet two keeps the newly launched cryptocurrency. Extra cryptocurrency wallet

How can startups benefit from ICO launching?

  • Creating awareness about the project
  • Promoting brand loyalty and building a network of investors
  • Facilitating token growth and development etc.

Bottom Line

Photo by Art Rachen on Unsplash

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