Thanks to the growing recognition and value that cryptocurrencies obtain every day, innovative startups are discovering incredible uses of blockchain technology, opening the way to a promising future.
Like any other company, these blockchain-startups need investment to be able to move forward. How to finance them? Among the various solutions that the blockchain offers to the world, there are the ICO –Initial Coin Offering–, a process based on crowdfunding, which allows new companies to be financed through the purchase of their tokens.
It is very likely that you have heard this term associated with scams, crimes or thefts. If you take a look on the internet, you will find several cases in which it has scammed from thousands to millions of dollars in this type of investment, however, do not be alarmed.
The risks of investing in projects through ICOs are not very different from those of doing them in the offline world, the difference lies in the abilities of investors, not in the lack of regulation since most of them tend to be undisciplined, inexperienced, they get carried away by the hype, expect illusory and exaggerated returns, as well as being ignorant in aspects such as tokenomics or, terms and technical concepts related to the blockchain.
This means that only a small number of expert investors can take advantage of the great investment opportunities offered by various ICOs, taking all the cake long before it can be sold to the public. Therefore, for the ordinary investor, there are only those unpromising startups, of dubious reputation or, simple deceptions and frauds, moving the cryptoworld away from normal people, something harmful for the future of the blockchain.
The immense hype caused by these projects –873 ICOs were launched in 2017–, has created very high expectations, this exaggeration has attracted many investors –during 2017 ICOs collected more than 6 billion dollars–, however, less than half of the projects financed through ICOs have been successful.
How to differentiate a good project, useful and capable of generating profits from a group of charlatans who only sell castle in the air or a pig in a poke? There is no algorithm for this, we cannot program a robot to do that work, we need human beings, trained and experienced in that specific area.
This sounds very expensive, right? However, the blockchain is synonymous with efficiency and lower costs; can we create a decentralized platform, where we can count on the opinion of experts in the field?
Not only can it be created, it already exists, its name is Vertex.
What is Vertex?
Vertex is the world’s first ICO aftermarket platform and ecosystem and has the goal to fill a gap that the ICO rush has created.
A platform that will make available to the public the best companies to invest through ICOs since a team of experts will thoroughly investigate the projects, investing in them at an early stage to offer preferential prices through Vertex.
This team will assure us that we will not invest in fraud or hype, but in serious projects that have the potential to shape the world where we live. This will allow us not to waste good opportunities just because of the bad reputation created by some ICOs.
Vertex will be the gateway of a large capital in the world of cryptoassets since it has the necessary contacts with individuals and institutions that are willing to invest their wealth in innovative and disruptive ICOs.
How does it work?
Expert analysts will make available to users a list of ICOs thoroughly researched so that they can choose in which to invest according to important criteria and opinions. Of course, this does not ensure that investments will lack risk, but it will separate good companies from those that are only frauds or bad ideas.
The Vertex system can be summarized as follows: select the ICOs to be financed, invest in early stages to obtain lower prices, sell at preferential prices the tokens in the Vertex platform through Vertex Tokens (VTEX). The users should be able to see comments, opinions, and analysis of the tokens so that they acquire the most convenient ones for them.
An example of the discount offered by Vertex is the following:
- 10% for the first half of the sold tokens
- 0% for the next 25%
- 10% increase for the remaining tokens
The team will differentiate the ICOs into two groups, those with recognition, that need only a small amount of investment and, the innovative startups that have the capacity to transform societies, therefore, will require a greater investment.
In order to choose which companies will have the Vertex endorsement, the company will carry out a series of steps to choose the most promising ICOs; these can be summarized as follows:
- Collect all possible data about the startups, categorize them
- Analyze thoroughly their business plans, the team, the advisors, etc...
- Meet in person with project representatives
- Choose the ICOs, agree on financing conditions
This selection process eliminates approximately 97% of the ICOs, leaving only the best ones.
Anyone can present his project to the Vertex team, so that, in case the analyst team approves it, it will be taken to the investors and project leaders.
It should be noted that Vertex's work ethic will not allow it to be invested in ICOs whose activities are aimed at betting, alcohol, tobacco, among other addictive activities that are harmful to society.
Benefits of Vertex
Vertex will benefit the cryptoworld in different ways since you can enter a large token market in one place, you can access the platform to get quality information about the projects and know what the demand of a certain token is, even before it enters into exchanges, however, its usefulness goes further.
These will have the opportunity to finance ICOs that have a high probability of success because if a project has the Vertex guarantee, it means that it is serious, therefore, its investments will be less risky. They will have the opportunity to acquire tokens that were never reached by the public due to their lack of experience, capital or contacts.
It should be noted that Vertex will allow those institutions reluctant to invest in ICOs due to their lack of experience, to make the decision since the high-level investors behind the platform will give them the necessary confidence.
With the seal of quality of Vertex, the projects financed by ICOs will increase their credibility, reputation, and trust, as well as obtain an important organic advertising –and free–, this will allow them to obtain financing from better investors. It is important to note that they will also obtain advice from the Vertex team of experts, which will open the doors to an important network of contacts.
The crypto community
If the bad reputation that some media and governments have created for blockchain and cryptocurrencies in general, is harmful to the crypto community, Vertex can only be beneficial for it since with the support of recognized experts and investors, ICOs can abandon that halo of fraud and bad reputation that have obtained lately, in addition, all the money bequeathed by investors will give greater liquidity to the cryptocurrencies.
As we have already said, it will be called Vertex Token (VTEX), it will have the characteristic of being truly useful for the use of the platform since it will be through it that users and investors will be able to finance the ICOs at preferential prices.
Vertex will have a wallet in which VTEX and all the tokens acquired in the market can be stored so that the users and investors themselves have the private key and all the problems caused by hot storage are avoided. In addition, user data on the platform will be protected cryptographically and through 2FA.
The team behind this idea has years of experience, not only in entrepreneurship and management of large and successful companies, not only in the world of cryptocurrencies and blockchain technology but in investment, from innovative startups to ICOs and trading. That's why there is no team more prepared to take on the challenges that Vertex will take, providing the confidence to ensure that the platform will be a success.
Vertex will be the tool for those who want to become professional crypto-investors, which will generate an incredible amount of benefits, taking the investment in the blockchain seriously and not just as a hobby.
This platform has the potential to eradicate all those evils that have been surrounding blockchain and cryptocurrencies for years, so that fear and alarmists do not take over the minds of individuals, allowing the distance between these technologies and people to be shortened every day.
For more information, check this short video:
Source: Vertex whitepaper. Images sources: click on it.
If you have any questions, do not hesitate to comment.
Posted from my blog with SteemPress : http://freetech.rockdio.org/blockchain/vertex-invest-ico-safely/