Assessing Risks of Initial Coin Offering (ICO)

Many crypto-based companies tend to raise money first and they worry about financial consequences later. There are steps to do, so ICO managers and business owners can be free from potential legal problems. One obvious way to reduce risks is by conducting ICO outside the United States and Europe. If you can afford missing out on US and European investors, there should be plenty of opportunities to perform ICO in other places.

However, regardless of how detailed your effort is, risks will always remain. ICO managers shouldn’t be weary of attempting to deter any attempt of scam. Raising money is a serious matter and you need to convince people effectively, so they will be able to participate in cryptocurrency. They should be aware of ways to mitigate risks. One way to reduce risk is by testing your projects before the launch day. If your project fails to work flawlessly before and after ICO, you will risk failing in your ICO effort.

Another effective way is to run a pre-sale and you can do this before the start of an ICO. During a pre-sale session, investors are participants are allowed to purchase tokens. A successful presale will have positive impacts during the actual ICO event. During a pre-sale, participants can get cheaper prices per tokens and other bonuses.

How Initial Coin Offering Decentralizes the Market?

Venture capital firms are always looking for highly lucrative, long-term profits. One of the aims of ICO is to distribute wealth across a broad set of people. Some IPOs have centralized investing format, which is accessible only to a small group of investors. ICO can be mixed with crowdfunding to let more people access it.

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Four Ways to Make Your ICO More Trustworthy

Scams associated with ICO have raised scepticism and distrust among investors. These doubts are justified because various quick money making schemes are taking advantage of ICOs. This affects honest business owners and innovators as well, making it challenging for them to start a successful ICO. Here are a few things to do:

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