What is ICO: Not so long ago, Bitcoin went through the process of coming into existence and holding promises of a potential future, although it was interpreted and understood as an absurd step towards digital currency. In the years since Bitcoin matured, the cryptocurrency ecosystem has exploded. Amid the ever-accelerating birth rate of newly launched coins, there is a type of transaction called an “Initial Coin Offering” or ICO. An ICO is a financial support seeking tool that involves the trading of cryptocurrencies intended for the long term in exchange for a quick value of existing cryptocurrencies. According to The Financial Times, ICOs are not supervised by cryptocurrency supply and distribution laws where investors can invest money.
On the other hand, The Economist describes ICOs as digital tokens issued on the indelible distribution of records and blockchains.
To conclude, we can say that ICOs are the new portable catapult that gives way to nascent cryptocurrencies.
Laws: Smith + Crown explains that most ICOs are software tokens sold that relate to time before they are available for purchase. To circumvent legal needs, ‘crowd sale’ or ‘donation’ instead of ICO are the commonly used languages now.
Is there a chance that ICO will slow down? In this regard, Crypto Hustle, writes in a recent article that the ICO hysteria is due to those people who adopted Ethereum as early as possible and are now interested in returning. So it cannot be assumed whether the pleasure-seeking phases will last long or not, but when the rectifications come, we will see which cryptos stick around.
If ICO is a safe buy: If you are a risk taker and not a risk trader, heedless of the end of capitalism, or the fact that this very issue could bury you, without capital, then go ahead, it’s your call.
Now that we have gathered information about ICOs, let’s move on to the last question.
What is the future of ICO: According to reports from a 2017 survey, “around 46% of ICOs did not reach the realization stage despite raising around $104 million”.
Reasons:
- Higher risk of investing in cryptocurrencies.
- Draconian regulations.
- Tough competitions.
- Decreasing performance.
- Volatile nature of cryptocurrency.
China has banned ICOs and Russia has brought to light a completely different set of rules and regulations for ICOs with the promise that investors can sell their tokens again. ICO promotions on Google and Facebook are difficult, and fraudulent crypto accounts were deliberately banned by Twitter. Do the higher authorities believe that the blockchain has a future purpose alive ICO? His future rots inside his own skin as he struggles to cross that extra bridge to prove his credibility.
Then yes. The death of ICO is really looming and before we know it, it could mingle and disappear as if it never existed in the economy. But there are still some coins that can become the next Bitcoins, so keep an eye out for the best ICOs.
