Introduction to ICO in the blockhain industry, Opportunities or risks?
Many terms have been realized in recent years in the crypto currency industry. We all know about blockchain ideas and also know whether it’s bitcoin even though
Since lately and towards 2017 we often hear about ICO. ICO — Initial Coin Offering. Used to raise funds as a starting point for capital. Something a company will lay out on a related project trip on the website and also provide a white paper for general reference. this case usually applies in the field of crypto currency. Karmacoin was the first to launch an ICO in April 2014 through the Karmashares project. So that in May 2017, around 20 ICOs will emerge a month.
Ethereum Blockchain predecessor in ICO
More than 50% of the total market share in crypto currencies using ICO through the Ethereum Blockchain. However, there are a handful of ethereum ICO networks involved in phishing, ponzi schemes and also other scams. This case has made the blockhain industry worse. rather than revolutionary to the Ponzi schemes.
What kind of ICO works
Let’s look in more detail with regard to ICO in crypto, good and bad ICO is crowded people still call “Gold Rush”. Crowded who has become a millionaire than ICO. Cuba, see below
The explanation below shows. Everyone transfers ethereum or coin to get involved in ICO. After completing the period for collecting funds, the amount collected will be disbursed. Habit after ICO, the management team will deal with the next step which is accompanying blockchainx.com . If you don’t know about blockchain, you can also check this post.
.How to make sure we are steps so that we are not affected by Scam
This case is difficult to explain because the ICO is in an unregulated state or is not escorted by any party. This crowdfunding has attracted many scammers. This makes our money at risk if we are wrong in choosing ICO. So it is certain that we want the money we have given out to produce results. So follow the steps that I stated below.
1.The first case must be for research and also familiar with the founding background of the ICO Founder. Easy tips, type copy name, search in linkedn.
2.Project Check introduced. Make sure the project being introduced is transparent. It must reach 100% of the level including the name, business plan and where they are located. the most important is where to contact them if there is a problem.
3.Make sure what blockchain is used as a platform. code used.
4.There should be a legal framework between developers and investors including terms and conditions.
5.Avoid ICOs that have affiliates or chains. more inclined towards ponzi schemes.
6.Make sure your money is saved in the escrow wallet. The custom escrow is to have multiple keys for account access. 1 key must be held by a neutral third party to two parties, the developer and also the investor.
I hope Mr. ladies may judge the ICO themselves. In opportunities, there are risks. at risk there is an opportunity. we can reduce the risk that exists with science. so multiply for research before joining ICO.