What is an ICO?
What is an ICO? Essentially, it is an event where a company launches a token sale to raise funds. The tokens are similar to shares sold during an IPO. The money raised during an ICO may be returned to investors or used for the project’s goals. Though ICOs are not regulated, the Securities and Exchange Commission (SEC) has intervened in the past to protect investors. However, you should be wary of these events, as they are not without risks.
The first thing you should do is check the market for ICOs and choose one that is legitimate. There are many ICO scams, and this makes it all the more important to find a project that has a solid track record. You should also check if the company’s founders are credible and experienced in their field. If the company is not, it may be a scam. You should try to find out as much information as possible about the company.
To be a successful ICO investor, you should carefully follow trends and check for VC support. This is especially true for ICOs, since some projects are successful and some are not. Look for VC support on the executive board, and do research on similar businesses. The risks associated with ICOs are high, but the benefits are worth it. Moreover, some countries have banned ICOs or have done little to regulate them.