WHAT IS AN ICO || 10% beneficial to tron-fan-club

Hello friends, today I will like to discuss about ICO, the difference between an ICO and IPO, how to create an ICO, and why you would to buy early. ICO have some advantages and disadvantages but it good to good to watch out for scam.

WHAT IS ICO

In a simple definition, an ICO is a strategy used by developers to launch a project and they sell their coin or NFT to investors to raise funds and it stands for initial coin offering. A company like Coinbase has used IPO to raise funds in the past and this means they sell their share to the public and use the money they raised to support pending projects.

IPO VS ICO

One of the big differences between IPO and ICO is that when you buy an IPO, you will become part of the shareholders of the company and that means you can take part in the decision-making of the company. If an investor is investing in an IPO, the investor is hoping the project will grow but an ICO does not have a finished project. When you are investigating an ICO project, you take a risk.

Another difference is that an ICO is not regulated by the authority while an IPO is regulated by the authority because they are a registered company. An ICO could run with your money because they are not regulated by the government. This is actually how they Rug Pull investors. For those who don't know what a Rug Pull is, it is when developers of a project run away with the money of the investors. An IPO doesn't experience a Rug Pull because they are regulated by the government.

STEPS TO CREATE A TOKEN

• A WHITEPAPER

A whitepaper is a paper that entails all about the project and token, the road map, and the problems that the project will solve. If you are creating a whitepaper, you will include what makes the coin special, the marketing plan, the problem that the coin or token will solve, the fees and wallets, and the plans.

• MARKETING PLAN

You need to come up with a marketing strategy, of course, the reason you are creating a token is to get people to buy your coin. The problem is that a lot of would find it difficult to believe an ICO project because a lot of people has been scammed with ICO project in the part. What you need to do is to get people to see your token and the problem the token will solve because won't a buy token that is not solving any problem. You can advertise your token on advertisement websites, on discord, and telegram.

• SELL YOUR COIN ON A PLATFORM

There is some website out there that let you do a pre-sale on your coin and that means you don't have to worry about it. The platform will distribute the coin to the investors.

WHY BUY EARLY?

People buy an ICO because they will have the opportunity to buy the coin at a cheaper price and when the project is officially launched the price will go up and they could sell it at a higher price. The second reason is that the developers will have enough money to fund the project and also to market in other to increase the price.

CONCLUSION

Unfortunately, a lot of ICO projects fail and they didn't follow their plans. Most ICO does not end up creating the project and something the value of their token drop even after the launch. It is good to watch out for scam ICO because a lot of people were scammed in 2018 and even in this year due to ICO.

THANKS FOR READING