The Initial Coin Offering (ICO) project space is exploding with more and more capital being raised, while at the same time it is becoming more challenging for crypto-enthusiasts to invest in them wisely. That may sound counter-intuitive, but it is the case primarily for the following reasons:
- For starters, there are so many ICOs out there it has become almost impossible for individual investors to keep up with the market. The ones that are brought to the masses are the ones being hyped by key influencers, or the ones that have a big marketing budgets. Other projects with lower starting budget or initial media exposure hardly seem to reach regular investors anymore.
- Another issue due to the increased popularity of this space is that some great projects don't even reach the ICO stage now. Instead they frequently sell out during the pre-sale or even the private sales prior to the ICO. Or If the ICO does take place, the inventory of tokens is scooped up in the first 10 minutes of the sale.
- Frequently, a minimum investment is required, which is often more than many small- to medium investors can afford, ultimately leading to the exclusion of these investors from larger discounts or even the project all together.
- If you do have an ICO you are interested in AND you are in time for the pre-ico AND you do fulfill the minimum investment requirement, there still is quite a bit of research required. And frequently people do not have the time or the experience to vet an ICO properly. For example, investing in an ICO should be preceded by reading the project's whitepaper, doing background checks on the team, checking the road map, validate code submits, etc. (depending on the type of project, of course). If any of these attributes would be lacking (without a clear reason) this would raise a red flag to many seasoned investors. Even after doing due diligence, one can still easily get burned by scams as was highlighted in one of my previous articles).
This is just a handful of the multitude the investors face when trying to identify those gems out of the wide array of projects thrown at us.
A suggested solution to all of this is BullToken. Yes, BullToken, another ICO, which is launching next week.
But before you get disappointed and scroll to the next article, consider the claim made by multiple sources already that this might be the last ICO investors would have to 'worry about'.
Still interested then? I can imagine, lets dig a little bit deeper in this one.
The reason why this could be the final ICO one would be investing in is because it allows investors to pool their resources to overcome the problems described above and much more.
It begins with your investment during the ICO (starting next week, details below). Your contributions and those of all other ICO participants will go straight into Assets Under Management (AUM). This means that they will be reinvested in ICOs the Bulltoken community votes as the best ICO's out there. The investment will be extremely diversified as a maximum of 1% of the AUM will be invested in any ICO.
The voting process on investments in short is as follows: A token holder submits an investment proposal which is then reviewed and voted on by the community. The ICO that has received the highest voting share will be dubbed ‘the people’s choice’ and will be invested in without interference. Remaining ICOs that have received enough votes, will also be considered and reviewed by the Investment Advisory Board (IAB) for community guidelines before investment decisions are made for them. Basically this means that the projects will be reviewed to ensure they are not be harmful in anyway or a scam. Note that the IAB consist for 50% out of Bulltech (the company behind Bulltoken) members and 50% out of community chosen members. This process repeats itself for every voting block.
It is also worth mentioning that members are incentivized to involve themselves in the community by the introduction of Karma, which is a tradeable asset and increases voting weight. Karma can be earned by making valuable contributions to the platform. It can be spent on submitting ICOs for voting processes to earn more Karma if the project is selected by the community or just to sell back to the platform for Ether. It is a way to reward (experienced) investors for contributing to the platform, while everyone enjoys the benefits of these efforts due to valuable analysis and proposals for investments.
So how does the token value increase?
Ah I am glad you ask as now it gets very interesting. Due to the investments in several quality projects, it is expected the AUM will increase. At the end of each year then, the IAB will list several options for buying and burning the Bulltokens on the market, which the community will then vote on. Whatever option is chosen by the community, it will lead to greater demand for the tokens and of course a lower supply every year. Due to this deflationary nature it is expected the price will increase substantially and the ROI increases if one chooses to sell at a higher price or just HODL as the token gains more value.
Head over to their discord or telegram if you want to know more or just visit their website which is pretty informative in itself.
The ICO starts on April 3rd, with larger discounts on the first days of the ICO
What do you guys think? Do your own research on this one and let the Bulltoken community do the rest of the work and sit back and relax? Or would you be the one leading the Karma pack?
Let me know in the comments below.
Stay Tuned for more soon!