The New World of Initial Coin Offering

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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