Risks, Rewards, and Risks of ICOs

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Bitcoin made a difference by introducing earlier currencies that individuals and businesses control their transactions instead of banks and credit cards. Now, we have another change in the form of Initial Coin Offering (ICO).

What Does an Initial Funding Provision (ICO) provide?

ICO is a new tool to help raise money that start-up businesses can use to raise money through cryptocurrencies / tokens. Here, investors earn money in Bitcoins, Ethereum or other types of cryptocurrensets. It’s like another kind of repatriation.

Advantages of ICOs

Like Bitcoin, the main advantages of ICOs are that startups do not have to deal with third-party bankers and capitalists who do business. ICOs offer a number of other features such as:

  • Raising money from anywhere in the world

  • Which is a great return for investors

  • Quick and easy cash withdrawals

  • An important point in avoiding the things that cryptocurrensets benefit in the future

  • Symbols cost a lot of money

  • Less purchase money

ICOs became popular in 2017. A good example from May 2017 was the ICO of a new browser called Brave. That made $ 35 million in just 30 seconds. In October of the same year, the total ICO sales revenue generated at the time was $ 2.3 billion, more than 10 times its performance in 2016.

Risks and Dangers of ICOs

Like any new tool, especially considering the millions of dollars involved, there has been some criticism and scrutiny by regulators. ICOs faced risks, frauds, and disputes that brought them under the control of professional businesses and government officials.

Risks common to ICOs include:

Lack of Rules

This is the biggest problem facing ICOs. Because they do not follow the rules and regulations of the central regulators, ICOs face a lot of controversy, controversy, and criticism around their credentials.

In the United States, the U.S. Securities and Exchange Commission (SEC) has not recognized ICOs and businesses, leaving them uncertain about their judgment. That’s why it might be a good idea to invest in launching ICOs that are affiliated with regulatory agencies.

Aboveh Possibility of Fraud

Another thing that ICOs are not regulated for is that there is a potential for fraud or deception. Those who bet on ICOs are usually non-profit.

Advertisers are not sure if a job that has not been released yet will be released. ICOs do not disclose even personal information either. Because of all that he knows, the whole thing is a single scam to steal money. On the other hand there have been cases of this happening with refunds.

Higher Chance of Failure

Starting to earn their money through the ICO has a much higher chance of failure. Instead, a report by a small group from Boston College in Massachusetts found that 55.4% of sign projects fail within 4 months.

Conclusion

In the end, ICOs have the potential to earn money quickly and efficiently but they face significant risks in terms of security, regulation and risk scarcity. It works in the beginning, but most of them do not. Whether it is a moral issue or not depends on how you feel about the consequences and how well your marketing skills are.

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