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There are several ways that companies can raise funds to launch products and services. A company can start small and allow its profits to grow the old-fashioned way. Most companies are using investors to garner support and quick money. Another alternative is to let a company go public, as they earn funds from multiple investors by selling their shares through an Initial Coin Offering (ICO). In this guide, you’ll learn about ICOs and the reasons why you should invest in one.
What is an Initial Coin Offering (ICO)?
An initial coin offering (ICO) is the cryptocurrency’s version of the initial public offering (IPO). An initial coin offering is used as a fundraiser for a company who launches a new app, coin, or service. Investors interested in the product or service purchase the offering with digital tokens or fiat currency. They’ll receive a cryptocurrency token that is worth the amount of the ICO.
Investors purchase the ICO in hopes that it will perform well. They hope to get a solid return on investment. The company that has the ICO will use the funds to launch its product or services. Startups often use ICOs to bypass the strict capital-raising process that’s often used by banks or venture capitalists.
Why You Should Invest in an ICO?
As the value of Bitcoin grows, there has been growing interest in ICO investment. More customers have been using Bitcoin and other cryptocurrencies for online payments. There are over 1,500 cryptocurrencies in the mainstream investment world at this moment. Decentralization and trust are the two most important factors for cryptocurrency investment, but they’re not the only reasons why you should invest in an ICO.
Decentralization is not just common among cryptocurrencies. It’s become widespread with altcoins as well. Unfortunately, not all ICOs gain popularity. Over 50% of ICOs don’t reach the minimum cap target. Despite this problem, most ICOs will continue to grow strong. There are several reasons why you should invest in ICOs.
Exponential Price Growth
There is exponential price growth with ICOs. One they’re listed on the exchange, their value can increase within moments of that listing. Even a small investment can lead to big gains on a low day. Even if the ICO doesn’t receive exponential price growth, investors will be aware of the profits once trading begins.
It’s all dependent on whether or not the ICO project itself has a cause and can solve a common problem. Only a solid ICO can increase its exponential price growth through increased interest and increased demand.
ICOs can give you discounts through each of its phases. This tactic is used to help you launch your project as quickly as possible. You can make profits from a small investment as long as you follow its road map. Investors make more money when they receive multiple profits from various ICO investments. ICOs are a great time to invest in cryptocurrencies.
Bamboo Tree Investment
The Bamboo Tree investment shows no signs of slowing down anytime soon. They have become synonymous with successful ICOs. They may not make you money from the beginning, but they will turn into a profitable investment after you go through the hurdles of the blockchain transition.
Credible ICOs stem from bamboo tree investments. Read through the road map of your ICO carefully before making an investment. You should then read the whitepaper about that ICO. Once you can verify that the ICO is a valuable investment, you can join the ICO list. ICOs that come from credible investment partners, great team members, and understandable roadmaps have successful Bamboo Tree investments.
Most tokens are created from smart contracts. Smart contracts are negotiations that set agreements and conditions for a particular transaction. Tokens can be exchanged for other tokens. Investing in tokens can provide you with greater customization.
Do your research before investing in ICOs. It can pay off when you ultimately make the decision. Join several cryptocurrencies and follow ICO websites to learn more about the investment process. You’ll how to verify the credibility of ICOs.
Ryan Yarbrough is a small business consultant, speaker, and the manager at Davis Financial Services, a small business consulting firm.