Get Funded with ICO Roundups
Get Funded With ICO Roundups: The Revolutionary Way To Get Funded
ICOs are surely gaining a fast popularity (notoriety to some) among the general populace. The reaction to this rise in popularity is a mixed bag, though, with some loving and others hating it. If you’ve been following the news recently, you might be able to tell the reason for the love-hate reaction from users.
For some, ICOs offer a fantastic way for fledgling startups to get funded very easily and quickly, hence the reason they are all for it. Others are not so enthusiastic and see them as something of a scam. They claim that the fact that ICOs are unregulated and appear fraudulent in nature, make them something to be wary of.
In all honesty, it would be hasty and myopic to say that ICOs are without flaws. However, it’s even more hasty and myopic to fail to see that their pros far outweigh their cons. A more balanced way to look at them might be the way we all look at every other thing: there’s no good without the bad.
So yes, ICOs might have next to no regulatory oversight. They may also have experienced more than their fair share of frauds, thefts, failures and all, but we can’t close eyes to the fact that today’s Ethereum is thanks to these ICOs. It has risen to be number two in the hierarchy of cryptocurrencies.
And, it isn’t just Ethereum, there are so many other startups all over the world today that received funding from ICOs. You can’t just judge them (ICOs) based on the failures without looking at their successes. And then again, who’s to say that projects funded the traditional way haven’t turned out to be scams too? It’s the way of the world, every good thing has the potential to be perverted.
So, we want to do you one favor. In our article today, we are going to be discussing ICOs in a bit of detail. This will help you judge whether or not you want to get into this ICO business. So, if you’re down, let’s go…
What Is An ICO?
An ICO is somewhat similar to an Initial Public Offering (IPO). In fact, the full term, Initial Coin Offering, as you can see, is derived from Initial Public Offering.
IPOs have a pretty basic principle. When an entrepreneur is looking to fund his company, he sells a small part of his stake in the company to investors in exchange for money. The investor, of course, must have trust in his speculation that such business has the potential to thrive in the future.
It’s the same way ICOs work.
Someone offers a new cryptocurrency as a token (a discounted price), and investors buy if they speculate that the cost of the coin will increase with time. So, the “offerer” gains funding for his project while the investor profits if the project succeeds and the price of the coin rises. However, unlike IPOs, investors do not own any part of the company offering the coin.
ICOs: The Good, The Bad, And The Ugly
As we have mentioned earlier, there are arguments for and against ICOs. For one, most are of the opinion that ICOs are a godsend since they open entrepreneurs to new ways to get projects funded. Also, since ICOs are open to everyone, the “ordinary man” can invest. In other words, the system is democratized.
These guys do have a solid point, especially in the face of the very successful Ethereum that generated over 100,000% ROI for its earliest investors, and is now a household name.
However, it’s not all good news. ICOs are unregulated. What this ultimately means is that any fraudster can easily get into the system and walk away with people’s dollars. A fantastic example is Prodeum that wanted to take blockchain technology to the grocery market. Many fell for it, thinking it was legit until it suddenly disappeared.
So, that said, here are some good and bad signs to watch out for in ICOs.
The Good Things:
- It will be hyped in most crypto communities.
- There will be a clear index showing that there’s an available supply of the coin.
- The token price is low.
- The developer’s team has a face.
- There is a known problem that the coin is looking to solve.
The Bad Signs:
- The goals of the company are obviously unachievable.
- There’s so much vagueness and many things aren’t very clear.
- A faceless team.
- Feels iffy and untrustworthy. No transparency either.
- Token isn’t properly handled.
Legality Of ICOs
Right now, it’s a grey area for ICOs when it comes to the issue of legality. The tokens aren’t really regarded as financial assets, they are seen more as digital goods, hence the reason for the near absence of regulation.
But then, there are some jurisdictions that are beginning to try regulating ICOs pretty much like securities and shares. DAO did a good job of piquing the interest of regulators such as the IMF who have been calling on regulators to cooperate and build a framework for the regulation of cryptocurrency. Of course, this has caused widespread panic in crypto communities worldwide.
So, it’s almost definite that ICOs will one day be regulated. However, this will, of course, bring with it a reduction in all the advantages we’ve come to associate with ICOs. Because, although no regulation means huge chances of large losses, it also means huge chances of large profits for those who invest.
Still, ICO has proven very profitable in fundraising. According to Btxchange.io, in 2017 a total of $3.8 million was invested in the Ethereum cryptocurrency via ICO, with $800,000 given out in January 2018.
Finally, here are some predictions for ICOs by experts:
- Experienced investors will begin to consider ICOs.
- Regulators are going to come down hard on ICOs and cause a temporary slowdown.
- Newer approaches and platforms will arise to answer to worries about performance and scalability.
- There will be interoperations between blockchains.
- Expect to see public-private blockchains soon (hybrid blockchains).
- Institutional capital will get involved and the market for cryptocurrency will grow.
Of course, this isn’t everything you should know about ICOs. However, with this, you’re already off to a good start.
So, are you ready to take the bull by the horns and try ICO roundups? It might just be what your project needs to get that funding. Who knows?