2018 has so far been the most successful year from the ICO point of view. The ICO investments which were limited to only a few million dollars per month until the beginning of 2018 have now reached to thousands of millions of dollars per month, thanks to the increasing number of realistic ICO projects in the market. It won’t be wrong to say that this is the golden era of ICOs or cryptocurrencies in altogether.
What is an ICO?
An ICO is an unregulated method for a cryptocurrency startup or existing company to raise funds for a new project. Through the ICO (Initial Coin Offering) event, the company invites investors to fund the particular project. In exchange for their money, investors get tokens or cryptocurrencies, which are digital coins which can be either traded on exchanges or can be used for accessing services of the particular project, or both.
In other words, your ICO investments do not grant you any specific rights or sharing in the organisation or a fixed value as tokens have no physical value. So, why invest in ICOs?
Now, you might wonder why one should invest in an ICO when they are getting no shares or value in exchange. Well, that’s not completely true. ICOs, in fact, gives you some indirect value, such as the ability to trade on popular exchanges and a huge return probability on long-term investments.
Why invest in ICOs in 2018?
The popularity and demand for the ICOs can be determined by the fact that the token sale of Ethereum, back in 2014, turned out to be a huge success and raised 2.3 million dollars worth bitcoins at the time. Inspired by this success, many new ICOs backed by new blockchain projects emerged over the following years, and many of them achieved success as well. Here’s why.
A new digital finance model
Blockchain, which is the underlying technology behind cryptocurrencies, is a boon for online financial transactions. Blockchain provides a highly secure and fast way to perform cross-border monetary transactions. Another great benefit is that this technology can be easily adapted by all kinds of businesses that deal in financial and digital transactions.
One of the major advantages of the ICOs is that they are usually backed by a decentralized network which is independent of any central authority like the government and is very secure. The platform can also be used for developing new decentralized apps for various projects. These apps will benefit in terms of high security, freedom from intermediaries, low cost, peer-to-peer transactions, among others.
Blockchain is a technology that has been used and proven by many. Since it is not limited by boundaries or any particular industry, blockchain is a technology that can benefit us in both personal and professional sectors. While it can make our personal lives better in terms of faster and more secure digital transactions, it can also improve the productivity and reduce the cost for businesses.
Another notable advantage of the blockchain is its global reach which is inspired by its decentralized nature which makes it free of boundaries or any centralized system. Since blockchain is a digital system, it can be used by anyone in any corner of the world. The same goes for all the decentralized apps developed on the blockchain platform. Similarly, ICOs are open to all.
Applications in various fields
ICO projects are no longer limited to the finance or trading industry. They are finding ways to many new industries. Today, there are blockchain startups that are working on expanding the reach of this technology to many more sectors, including health, education, banking, digital payments, shopping, elections and more. Medipedia is a popular example of a decentralized healthcare system based on the blockchain.
Another ICO benefit is through the tokens or coins. Many people believe that tokens are of no use since they do not hold any real value. But this is not exactly true. Depending on the type of a token, it can either be traded on popular exchanges or can be used as a payment method for specific service or may have some other use. A token is essentially a cryptocurrency that has a purpose.
ICO investments have a proven track record of producing high ROIs for all the involved parties. The success rate of an ICO is directly proportional to the money you can make from it. The higher the demand in the market, the higher would be your profit. So, invest wisely.
Last but not the least, most of the tokens sold during an ICO event are further traded on exchanges. This is one way for companies to raise the demand and value of their ICO tokens. However, the demand again depends on the project idea itself. Depending on the exchange platform, a token may be enabled for margin trading, direct exchange and other popular trading methods.
There are many reasons to invest in ICOs, but first, one should know about the things that make an ICO truly great and worth investing. There are things, or you can say signs, that can help you identify a good ICO from a bad one. These include website quality, white paper, project idea, the team and other related factors that might affect the ICO performance.
So, yes, ICOs are definitely worth your investment, but be sure to invest in a good and trustworthy ICO if you want your investments to return back to you in the form of huge profits.