Initial Coin Offering or ICO remains a great way for crowdfunding to get financial support from both individual investors and venture capitalists. Many ICOs manage to raise a significant amount of fund. This leads to various risks such as failed projects, diminished investor confidence and scams.
The structure of ICO appeals investors who seek quick financial gains, because it’s easy for them to contribute financial support. The ICO market continues to evolve and there are still rooms for improvement. It’s important for all parties to quickly address prevailing problems that affect traditional ICO models.
There are two Types of ICO that you should know:
1. Capped Sales: Capped sales mean that the amount of circulating tokens is fixed. The benefits of capped sales are that investors always know the exact valuation of a project. However, it means that investors will become more confident and available tokens can sell out within minutes.
2.Uncapped Sales: Uncapped sales are if the valuation isn’t fixed and it’s based on the participation of users. It means that everyone has more chance to participate. But, because investors don’t know about the real project valuation, this will represent an additional risk.
Before participating in an initial coin offering, it is important to make sure that there’s a dynamic participation model to make sure that sales will reach equilibrium. Investors will act more naturally by placing and removing bids according to behaviors of other users.
Ideally, the ICO is decentralized and implements a fluid bidding system. Qualifications to invest could be based on the fact, whether you are an accredited investor or part of an established institution. However, for small business ICOs, just about any investor can have a direct involvement and you can immediately commit your financial resources.
Publish & Promote Your ICO
Publish / List ICO (Token Sale) on ICOsComing.com: You can check complete list of Pre-ICO, Live ICOs & Upcoming ICOs listings on ICOs page. Select ICO Listing Packages to Reach Right Audience and Showcase your ICO in Front of Investors.