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How to Invest Wisely in Cryptocurrency? First Understand ICOs In every Detail

Nov 22, 2017 Posted /  2945 Views

How to Invest Wisely in Cryptocurrency? First Understand ICOs In every Detail

The ‘Innate’ ICOs

Consider the innate ICOs as those projects that are legitimately Blockchain meaning the project could not be implemented without the use of Blockchain and related technologies. This types of projects can be easily identified by asking the simple question of, “ is it totally impossible to execute this project without using the Blockchain?” in most cases the company's whitepaper would give you a perfect answer to this question. However, as an investor, you can go ahead and get a proper explanation from one of the project’s team members. Most projects of this nature have ideas contrary to the traditional knowledge of initial business development.

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Projects that have been successfully funded in this categories include the popular Ethereum Protocol that sold tokens that could be used to compute time and execute smart contracts on a new world computer. The project sounded weird right, yet it became one of the most successful ICOs.

The main advantage with this category of ICOs is that its new ideas are evolving that transforming the face of technology and giving millions of dollars in profits to investors. However, with the progressive government regulations on cryptocurrencies, it’s innate ICOs future might be clogged.

The ‘Contrived’ ICOs

Consider a traditional company like AT&T diving into doing ICO on a crypto project, with a white paper instead of the fundamental financing decks. Lately, it’s become common for companies failing to raise capital in traditional ways to consider doing Cryptocurrency ICOs. these companies actually don’t have a place on the cryptocurrency ICO board and will soon fade away from the ICO spotlight when users get aware of them. Most companies under this categories develop tokens for a specific utility on a specific platform. Examples of such tokens include Lydiacoin, Qor, and many others. You can easily identify these firms with the following checks,

  • Success of the firm depends of the activities of another

  • Third parties are required for every transaction

  • Consider analysing the short-term goals of the firm.

This type of ICOs makes the real Blockchain ICOa to lose meaning.

The ‘Celluloid’ ICOs

There are a number of companies with loads of audience and users but struggles to raise funds for expansion and diversification. Consider tokens like the Kikcoin owned by the famous messaging apk kik. Many firms are running to cryptocurrency as the new way of raising the investment fund they direly need.

Celluloid ICOs help companies gain more market and develop more products for the market while allowing a stream of investment capital to flow in the financially crippled companies. Administrators of such companies always think of ICOs as an easy way of making money which sometimes makes the company to never achieve its golds.

Mock ICOs

These are ICOs for companies whose purpose has been rephrased to describe luring activities that can easily attract user's attention. Consider tokens like the Dogecoin, a company that successfully completed it’s ICO and is now worth over $125 million. The main advantage of investing in such firms is that creative ideas always make it big in the cryptocurrency space. Meanwhile, investors should consider knowing the project leaders a little more and controlling the amount of many invested in such projects.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: Ethereum icos Mock ICOs crypto project

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