Understanding Initial Coin Offering for Beginners

If you want to try other non-traditional investment opportunities, you should give Initial Coin Offering (ICO) a shot. ICO currency has become a popular way to invest in the cryptocurrency world.  ICO rapidly surged to popularity since 2017. ICO is like Initial Public Offering (IPO) and crowdfunding.

IPO is an act of selling stocks or shares of a company to the public. Crowdfunding, on the other hand, is an act of raising small amounts of people from a large number of people. The campaign of crowdfunding is usually donations, which means there is no return on investments. ICO is an act of raising capital by offering to the public. If you are keen on investing, here are the different things that you should understand about ICO:

What are the factors affecting ico ranking?

At the end of the day, it will be up to you to decide which ICO company to consider. The prudent way is to check ICO ranking. It is therefore important that you conduct your research before engaging. No matter the appealing proposition or trendy slogan, you should be aware of different factors to make sure that you will be successful.


The first thing to look for is the personnel. The team will drive you to success. It is right to check their history, track record, and credibility. The next thing to check is the whitepaper of the company. Whitepaper refers to the company’s mission, vision, goals, timeframes, return on investments, and many more. It is basically the company’s guidebook. Another thing to check is the communication channel of the company like a blog, public events, social media, email, forum, phone, advertising, and tradeshows. More importantly, check the ico list rules and regulations of the company. If there will be problems with the law in the future, does the company have a good legal team to handle ramifications? These are the things that you should look for in an ICO.
What is the process?

As soon the white paper is done, a startup company will open ICO to raise money for all operational needs. This is called ICO campaign. The ICO campaign investors and supporters will then buy crypto coins using virtual currency. These coins are referred to as tokens. The tokens are similar to shares or stocks in IPO. If the money reached the minimum funds needed by the company, the scheme will be completed. If the money did not reach the minimum funds needed by the company, the money will be returned to the investors or supporters signifying a failed project.

Determining the investment risk is not easy but it is somehow lesser in ICO. Remember that if the company did not reach the minimum funds needed, they will return the money to the investors. Without a doubt, there is no stopping ICO even if it is not regulated. More and more people are convinced that it will be the next big thing. If you want to invest, make sure that you understand everything to find the right startup company.