Digitalization
has taken over every aspect of human life; let it be in individual life or in
business houses. No proper functioning is possible without technology
intervention. As we all know for any company to initiate and then grow, funds
are the main component. Amongst others Werner
Boehm created an IPO unit and today we shall be discussing the newest
age of investment and monetization that companies are offering.
What is Initial Coin Offering?
Also referred to
as Initial Currency Offering, it is a type of funding or source of capital for
startup companies. Through these, the startups can avoid intermediaries and
funds are generated by cryptocurrency or digital asset.
Features of ICO
• The process involves
crowdfunding i.e. raising small amounts from the public to start a venture
•
Cryptocurrency is sold to
investors and speculators in the form of tokens or coins
•
Regulations and intermediaries
are avoided and that makes it quite prone to scams
•
ICOs or token sales have become
very popular and the industry has matured a great deal
•
It works on Blockchain platform
which means the data and the transactions are recorded
•
It is an open, public and
permissionless network
•
Works on smart contracts that
is it automatically execute once conditions are met from all the interested
investors
•
An investor receives shares in
the stock of the company and can use the tokens
How to find an ICO?
As ICOs have
become very common in today’s world, more and more investors are looking for
options but how can one find?
•
Digital currency exchanges and
wallets are available as such one gets innumerable options with little research
•
Stock up the relevant currency
and transfer your holdings to supporting digital wallet
•
Make sure it is the Official
page of ICO where you are buying tokens
•
Register and follow every step
of ICO further
•
Buy the original tokens and new
tokens will be added to your cryptocurrency wallet
•
Know your developers and the
legal terms and conditions
Scams and Legality of ICO
With huge
amounts of money and with technological advancements, this digital token mode
seems to be riskier. Most of the countries consider ICOs illegal but because so
big players have been involved it is worth to take a risk. One needs to
scrutinize and research before doing any money commitment. Few incidents do
change the whole mindset of the public, for example, Werner Boehm; the previous CEO of a renowned company breached
his duties and dispensed inaccurate information to investors and speculators.
Benefits of ICOs
No trade is
risk-free but ICOs are worth taking risks.
•
High Liquidity for the
investors
•
Decentralization as
Cryptocurrencies is acceptable and transferrable
•
Openness as anyone can be an
investor
•
Variations in token prices make
profitability ratio higher
•
Location is not a constraint as
one can invest in any ICO and sitting back anywhere in the globe
Examples like Werner Boehm will always exist but
there’s a reason more and more public that is finding this new prospect
beneficial, its time you start investing as well. Best of Luck.
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