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ICOs or the Initial Coin Offerings are just like an IPO in share markets. ICOs are the Initial Coin Offerings, which is just a way to the initial fundraising for the projects and is a new dimension in the Cryptocurrency World. To start off, the companies create a certain digital token and distribute it to the public, some are being paid as a free giveaway, while rest are being purchased in return of the Bitcoin or any other currency purchasing methods. These tokens are based on Ethereum platforms, which feature a toolkit thus offering the companies in creating a token.
- 1 The Rise of the Initial Coin Offerings
- 2 What are the Benefits of the Initial Coin Offerings for the buyers?
- 3 What are the Downsides of the Initial Coin Offerings for the Buyers?
- 4 How to protect yourself from Initial Coin Offerings scam?
- 5 Top Initial Coin Offerings of all times
- 6 The Future of Initial Coin Offerings
The rise of the ICOs has been seen in the recent 1.5 years, where lots of ICOs are being offered to the public. The first ICO ever seen in the market was in the year 2014. A total of seven such ICOs were seen in the year, among which the Ethereum was the biggest one. Following the year 2014, the year 2015 was a quieter year, where the prime ICO was Augur. However, the year 2016 saw the sudden rise of the number of Initial Coin Offerings and that the year saw more than 43 ICOs among which the Golem, Waves were the prime ones. The following year 2017, saw as many as 342 such projects and raised a significant amount of money in a short time.
The ICOs may accompany several benefits, which can come in various forms. Let’s discuss the various benefits of the ICOs for the buyers’ perspective:
- Possible gain through the increase in the price of the token offered. In fact, during the ICO Period, the tokens are offered at a very low price, and as soon as these tokens start getting listed on various exchanges, the chances of the price increase for those token are certain. Even, the price can see a rise of more than 5 times or so, and thus giving the token holder a chance to earn a significant profit with the ICOs.
- At the same time, the interested Crypto enthusiasts can offer themselves a role in developing a new technology. Most of the people have been seen as becoming marketing strategists for the ICOs and in return getting additional Tokens or amount, depending on the deal.
- You can indulge yourself in some innovative service and can start your own business in the field of Cryptocurrency.
ICOs or Initial Coin Offerings are not always a beneficial for the buyers, and accompany with some risks, which are listed below:
- There is absolutely no guarantee that the project will get developed, and thus the person who bought the tokens may risk of losing the entire money invested in buying tokens. Study stats that most ICOs are fake, and they never get the start. A Survey states that more than 90% of the ICOs are fake.
- There is absolutely no regulatory protection, thus the investors are at their own risk.
- Some ICOs are made for collecting private information of the users, and thus the users are always at risk of getting scammed by several online means. Since there is no transparency in the working structure of these ICOs; the users are at risk of being scammed and being looted.
How to protect yourself from Initial Coin Offerings scam?
While the genuineness of the Initial Coin Offerings is very hard to determine, what you can do is to avoid providing all important private information during the Initial Coin Offerings. If any ICO is asking for the details like bank accounts, or any other details, where you may sense, you have the hard earned money, better leave that ICO. Also, create a separate email ID for the same purpose and also create a different Wallet address for dealing with those ICOs and tokens. Make sure that you are not furnishing any private information, where your money is put in already!
Here is the list of TOP ICOs of all time, sorted out on Ranking wise:
|Name of the ICO||Amount Raised|
|Filecoin [Futures]||$257 million|
|SIRIN LABS Token||$157.9 million|
Nothing can be said with utmost surety, but amidst lots of fake Initial Coin Offerings, which are popping out every day, the ICOs have still some breath left, which can push it towards its goals. There are lots of potentials attached with the ICOs, but it entirely depends on the way, the ICOs are being handled. It has surely a potential to bring a new dimension to the Cryptocurrency Market.