ICO Information and How to not to get Scammed!
What exactly is an ICO?
ICO stands for - Initial Coin Offering. This is normally done for the process of obtaining funds for a project. People will buy into the projects and obtain tokens. These tokens are a representation of their share of the project contribution. It can be thought of like a bought share, as in if the project does well, or even if the altcoin / token becomes high in demand, your original investment can increase. However many times not, these ICOs are little more than a shell game with your money. Often there is original sencere intent, in the form of an idea or even conversation, however, it often spirals into a premine by the creators and a sell off before any real growth can take place.
There are examples of legit ICOs doing something other than make the creators rich. However, you need to do some real deep research to really know what you're getting your money into. Learn about smart contracts and Ethereum and make informed decisions about your purchases. It's far to easy to get scammed and really make costly mistakes without knowing it, if you blindly accept every ICO for their word.
Be Wary and Cautious and watch out for the following:
- Do they have a website?
- Is there a face to the ICO?
- Do they give out detailed information?
- Can you ask questions?
- Do they give updates?
- Is it too good to be true?
- Good Marketing?
- Is it even legal?
- Trust your gut!
ICOs are not really new, in concept, since they play off of IPOs which stands for Initial Public Offering. But they are new in the sense they deal with cryptocurrency, smart contracts, DAO which stands for Decentralized Autonomous Organization. And these are really how the future of business will operate, due to it's flexibility and lack of centralized corruption to muddy the overall objective that founded the buisness model. A whole new horizon of decentralized business is opening up and we are the test pilots and engineers. Together we can do wonderious things, we just need to highlight the problem spots so the wonderious stay that way.