With so much going on with the Bitcoins lately, the new trending topic is ‘ICO’. The Fintech Industry is slowly taking over the news by advancing in the blockchain technology. The term ICO stands for Initial Coin Offering that can be defined as a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for early capital.
The ICO has often been compared to IPO i.e. Initial Public Offering but the difference is that ICO further democratizes the fundraising process and serving as a crowdfunding instrument that can be lifted at scale. Recently, a big news broke out about $400 Million of ICO investments have been stolen by hackers. But these are signs that can tell you whether it’s safe to invest in ICO or not:
- To look for social proof and validation is always a must step to follow. Companies that have thousands of active users will publish reviews and testimonials, hence verifying themselves.
- The companies that are genuine about initiating a token offering will have no concerns about publicizing their true identities. Making it a necessary step to analyze the company’s team and their background.
- Choose the most coin offerings that host very active events, forums and have blogs whose community has a voice in the decision-making process of the company. It’s always a good decision to opt for an active and thriving community.
- One of the most important things to do is doing your own independent research on the matter. Pay attention to basics and find a roadmap to go through the technical details. Because it takes a true technologist to successfully scope out a technical roadmap for a product or service.
As suggested by many domain experts the bubble is about to burst as the market is flooded to participate in ICO. The Android app developer in Melbourne create applications that follow the data protection obligations of ICO to deliver innovative Android apps.