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.
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.
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: