How to identify if an ICO is safe?
First of all, an ICO is the acronym that stands for Initial Coin Offering, which is similar to a stock exchange term: IPO, Initial Public Offering, the public offer of sale.
Both terms have the same purpose, which is to offer shares to potential investors in exchange for money. An ICO is a business project that needs financing to be able to carry out what is planned, which is the main goal of this article, to know how to identify a safe, viable and solid ICO.
There are many successful cases, but the one that is most famous is the one from Ethereum, an ICO that became cryptocurrency and is currently in second place in the currencies with the largest volume below Bitcoin. This is because the company is committed to the project, which is to handle smart contracts that are stored through BlockChain.
The characteristics of a solid and reliable ICO
To be able to consider that it is a reliable project, it is necessary that it has certain requirements. First, the White Paper, which is the document that establishes the basics of the project (how much they need to be able to progress and what technology they will use). It is practically the business plan of the company. Second, it is essential to put people in charge of the technological development. In the third place, alliances are necessary. Within the White Paper it should be mentioned that strategic alliances have a recognized exchange working in the project, which would mean that it's in fact, a reliable ICO with great growth potential. No renowned company wants to be related with a scam.
You must be very careful when investing with these financing methods, if the project does not convince you, even though it has everything mentioned above, then do not invest. Sometimes, the sixth sense can be more reliable than anything you've read.
Types of ICO
There are all types of projects, ranging from conducting market studies regarding the preferences of buyers, (a NUCLEUS VISON project).Or projects related to video games, such as Tri Force Tokens, which aims to create an ecosystem where video game lovers can have all their information stored and at the same time, enjoy what they like the most: To play. This type of ICO has great alliances with a large percentage of success.