FREQUENTLY ASKED QUESTIONS ABOUT ICO

What is ICO?

Initial Coin Offering (ICO) or Crowdsale, is a new method of fundraising. It’s pretty similar to crowdfunding or even IPO with some differences. For instance, participants of crowdfunding campaigns usually receive the end product of the company to whom they’ve sent money to. ICOs ,participants receive tokens (internal currency) of the project which has its own utility value. Crowdsales became very popular in latest 3 years. It makes fundraising process much easier for small and medium businesses.

Where to find the best list of ICOs?

To participate in the Token Generation Events (TGE) you need to make research and consume a lot of different information. To find such information you should use Initial Coin Offering list – it’s a website where you’ll find all information about token sales. Also, there’re websites who provide ICO rating and reviews to make you even more prepared. ICOguru is one of these websites. Here, you’ll find all necessary data regarding token crowdsales alongside with reviews and analytical information.

Why is it profitable to invest in Token Generation Events?

Cryptocurrency token sale is a process of fundraising where everyone is welcome to participate. It was made by people for people. Today, if your small and young business needs money you can use a concept of TGE and raise necessary funds in exchange for tokens, which represents blockchain assets and has utility value in them. Later on, people will use these tokens to interact with your product. Moreover, these tokens will be tradable on different cryptocurrency exchanges and token holders will have an ability to sell it with profit for them if they don’t want to use final product of your startup.

What are tokens and which standards are existing right now?

Tokens represent small valuable pieces of your project. Best ICO of cryptocurrency startups are using the ERC20 standard to create their tokens. It was developed by an Ethereum community to bring standardization to the entire ICO industry. To be compliant with this standard, tokens must be issued using the special skeleton of smart contracts which specification is mentioned in ERC20 standards. Now we have another standard – ERC223 it’s pretty similar to ERC20 but using another issuance model with lower fees per transaction.

What are Smart Contracts?

Smart Contract is a new concept developed by Ethereum project and basically, it’s just a digital agreement with the strict rules. It looks like a code and will be executed only when ALL conditions will be met. It means that no ability for any fraudulent activities left. To execute contract all if…else statements must be completed and it cannot be executed partly. Like traditional business agreement but without needs to go to the Court in case of fraud, because execution will be declined in case of such things as a fraud.

Why do you need ICO list?

-Any ICO list has minimum 3 categories of crowdsales: Ongoing, Upcoming and Past. If Past is not interesting for you as an investor, another 2 categories are very interesting. In the ongoing cryptocurrency ICO list, you’ll find projects which has already launched their TGE and already raised some funds. It can be at Pre-ICO stage or main stage of crowdsale. It’s the most suitable category for investors. Upcoming category has projects which are only going to start in the nearest future.-
-Any project at ICO coin list has its own card with essentials about TGE: Start/End dates, ICO website’s link, price per token and so on.
-Using these project cards you can track ICOs, you’re interested in. Their status, alpha or beta release dates and current progress of the TGE.
-Cryptocurrency ICO list is used to help potential investors find an interesting project and have some analytical reports with current progress data.

Risk Warnings

If you’re going to participate in any cryptocurrency ICOs you should be aware of risks coming alongside with huge profits. Current stage of the entire industry has lack of regulations because it was invented as self-governed technology and regulations are only under development. Because of this, a lot of scammers are entering an ICO market and they are eager for your money. To stay safe you should follow these steps:

Do your own research and do not rely on someone’s opinion. You can ask it and consider it, but think your brain first and remember that someone’s opinion is not the truth itself.

Invest only that amount of money, you’re able to lose without serious consequences for you.

Try to find as much information about particular initial public coin offering as possible. Use many different sources to build your own opinion about the project.

Check social network activity of the project. If they do not have public profiles of the team members or do not have corporate social networks – it is probably scam project.

Try to reach advisors of the project to ask their opinion about this project. Sometimes, guys mentioned in the advisory board do not even know that their names mentioned somewhere.

Read whitepaper and onepager of the project. To recognize the idea first and only when you see something valuable, you can invest in them.

good luck...:)