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What's your thoughts about ICO?
ICO had been booming since last year, however more than 80% of them are scams. Currently, South Korea, China and India "ban" ICO, therefore do you still think that ICO should be the way for crypto related project to get funded?
$1.12
11 ANSWERS

ICO, like any other instruments, are just a means to raise funds or build publicity on the side of the issuer, as well as an investment opportunity on the side of the investor.

There are tons of compliance and regulation when it comes to IPO and Series Funding. ICO represents an "easier" to raise funds via cryptocurrency since technically the blockchain is borderless. There are scams on both sides of the argument. Only that perhaps because of decades of enforcement and regulation, non-ICO fund raising scams are way less simple than most ICO scams.

Take Theranos for example. Despite all the regulations and compliance issues that Elizabeth Holmes and her lawyers managed to overcome, It still ends up being revealed as a "Billion dollar scam". So the assumption that legal compliance translates to no-scam is dangerous. 

In many countries, people are locked out of investment opportunities because they lack the network or capital to do so. In the US, you literally are locked out of Series Funding investments if you aren't a millionaire (accredited investor) because SEC is "concerned that poor people can't make sound investments" (extreme paraphrasing here). The rich gets ample opportunities t get richer while the poor are legally banned to do the same thing.

ICO was envisioned to be a way to solve the capital rent in the investment industry. Startups can get funding opportunity from a larger pool of investors while people can invest any amount possible without government intervention and potentially get as much  percentage returns as millionaires. Ideally a win-win.

Reality isnt so beautiful though. The compliance and regulations were there in the first place to protect investors from scams and bad faith. Without the regulations, it's the Wild West. Anyone is free to do what they want and the only protection to the investors are their own wits.

It's too early to say whether anything good will come out of ICO, But over the past 10 years, the highest performing investments are all undisputedly ICOs. 

<source: steemit.com/crypto/@hilarski/what-ico-s-have-had-the-highest-returns>

This is the sort of scenarios where the free market literally comes to play. Good investments makes overnight millionaires while bad investments leaves the investors with nothing. No one is there to interfere regardless if things went north or south. There's a funny saying where "the most you can lose is 100%, but there are no limits to the gains", obviously not a good advise. though it does shed light to what's going on in the ICO space.

On Whether ICO is the only way. Heck no.

We as Steemians are literally either seeing or participating in another crypto-alternatives to fund raising. Musing.io recently (as of time of writing) just gotten a delegation of 400+k Steem Power. The sort of opportunities that comes with such a delegation is massive. And I can't state all the advantages of using delegation as a form of investment and fund raising mechanism as compared to direct capital investment.

And then there is crypto microloans, or even smart contract itself, where the possibilities are literally endless. Imagine a type of funding round that incorporates FOMO type smart contract in place of Series funding. Where people and firms can "place their bets" on each funding rounds where the funds gets unlocked only when the smart contract requirement is met. Would it work? I have no idea, but it shows what can be done.

What cryptocurrency is doing to finance is akin to how the internet changed the way we learn, or what automobiles did to transportation, or how farming changed the way humans look for food. Sounds grandiose as heck, but I am confident it's what we're seeing.

ICO has irreversibly changed how people look at the idea of fund raising. There will always be scams, and the scams will only get smarter. But the possibility of placing your money even if in minuscule amount as a show of faith and the ability to fund ones company without the restrictions of border is something that we cannot turn away from. it would serve the governments better not to outright ban such a powerful tool. Even doing so in itself might have political ramifications which is an entire different conversation.

$4.13
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An ICO is a horribly inefficient method for raising capital.  (I also believe most run afoul of U.S. securities laws, even if the SEC has not been aggressive at enforcement.)

In conventional venture capital, as bad as it may be in many ways, money invested is usually proportional to company progress.  A company gets a little investment to start-- a few million dollars, usually, or even less.  Then when it has success building a product or finding product-market fit, it can raise more money--- maybe tens of millions.  Finally, when the company is growing quickly and has proved its value, it can raise hundreds of millions in an IPO, or from large private equity investors.

ICOs almost uniformly squash all these tranches together. The founders get all the money up front. (And why wouldn't they?) They raise entirely on promise, not on results.  So if the idea doesn't work, or the token doesn't find an market, there has been enormous waste, compared to incremental funding.

There are other flaws, but I think this is the key one: fundraising happens all at once, without any proof of product-market fit.

(I wrote a more in-depth analysis of Filecoin on Steemit previously: https://steemit.com/filecoin/@markgritter/should-you-pay-for-storage-with-filecoin-probably-not)

$2.09
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I like ICOs because it is a relatively new concept. It has opened doors of funding new ventures that was not available before. 

Here are some things to note about ICOs:

  • You cannot predict which ICOs will perform phenomenally and surpass everyone’s expectations. 
  • You need to spend time and research the ICO’s whitepaper, founding members, project utility, timeline and so on. To learn about ICOs, you can use different websites like ICOAlert.com
  • Use your common sense when reading all the information. Do not go all-in in any one, single project. There are hundreds of ICOs in the market now. If anything looks off on the website or the promises made, stay away. 
  • The most important thing about an ICO is the whitepaper. A clear, complete whitepaper should not have any holes. The next important thing would be any form of existing or working code on GitHub.
  • A “good ICO” should have all the bases covered (and more) and have the people involved be super-excited about the coin and its potential.
$2.08
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At this time, ICO is no longer as good as the old days, more and more emerging ICOs have made many projects fail, resulting in scams, big losses for investors and bounty hunters, prices not in line with expectations. Choosing a project that really works is very difficult at this time.

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1 Comment

ICO is a proven and effective method for kickstarting crypto projects, provided the product is in demand and the team that works on it is good. There are several similarities between the concept of Initial Public Offering and ICO. However, there are several key differences.

There are many possible benefits by participating in the ICO. What is clear is: You help companies launch their products. There is also an opportunity to make profit selling ICO tokens after you buy them. the main purpose of each ICO participant is to help fund a project that they think is interesting. However, there is an additional opportunity to benefit in the process.

You must remember that not all are guaranteed to be profitable. If the ICO campaign may fail and in one case, all contributions will be returned to the sender. Even if successful, there is a possibility that the developer cannot send the final product and the token price will never rise. This is the risk that all ICO participants must take into account when they decide to contribute to any campaign.

$1.21
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1 Comment

ICO stands for Initial Coin Offering which means a start-up or team that is looking to run their project / project and use the ICO method to get funding (crowdfunding), by participating in ico by sending funds through the payment method specify that we will get tokens from the project.

Through the ICO method many advantages can be obtained:

Projects that are being planned can be quickly implemented and tried whether or not the project is successful

Can encourage the development / advancement of technology through ideas born of new start-ups that appear throughout the world

The downside of this method is:

There is no body or organization that regulates this, so if the project that we support through ico is not successful then we can make sure that the coin / token we get from the ico becomes non-value

There are many greedy people in the world, so there are many people who are irresponsible by utilizing this ICO phenomenon and trying to take investors' money and disappear from circulation (SCAM)

Well, if you are a person who intends to participate in this ICO phenomenon and want to invest in ico it's good to note the following points in order to minimize being trapped in the ico scam:

Conduct research or extract information about the project

Starting from who are the people in the project, if you often see - see ico in the ICO LIST, you can see there are many ico in progress, there you can find ico which you think has the potential and has a project unique, so it's a good idea to look at the TEAM section, and start doing research about each individual starting from the background of each of them.

To see the portfolio from their individual, you might be able to see their data through the linkedin site. Here you can see a list of their work history, here you can consider whether the ico has a solid team or not.

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2 Comments

I think you should be very leary of them.  a large percentage in the last year have been complete scams and a lot of people halve lost a lot of money they invested. Do a lot of research before investing your money. 

$0.24
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The ICO or Initial Coin Offering lately has been more aggressively developing especially in 2017, many developers are using this method to raise funds to develop their projects. Funds collected are not half-hearted to reach millions of US dollars.

The first ICO was done in 2013 and the first coin released from ICO is coin Mastercoin or OMNI. That is a cryptocurrency and Blockchain-based communication protocol that collected many tokens in July 2013 at the Bitcointalk.org forum.

 Ethereum is currently the most successful campaign ever and the coin has now reached the price of 0.12 BTC per coin. Some time after a successful funding campaign in 2014.

What is ICO? Following are the Explanations and Advantages of the Initial Coin Offering (ICO)

Ethereum as a criptocurrency launched in 2015. Since then it has been able to become the second largest coin currency after bitcoin.

What is an ICO?

ICO stands for Initial Coin Offering. Initial means the earliest, Coin means digital token / coin and Offering means bidding, if it means overall means the earliest coin offer before launching to the free market.

What is the purpose of the ICO

This ICO is usually offered by developers where their goal is to raise funds to develop projects that they do in this case are digital coins. They need funds to force the projects they are doing so that they can develop quickly and can be completed as soon as possible.

What are the advantages of ICO

For developers, they will get financial assistance to accelerate the projects they develop so that they can be enjoyed by many people. For investors, they will get tokens or coins which will be freely traded on the market exchanger.

The advantage for investors participating in the ICO before the coin is launched into the free market is the price given will be cheaper. And usually when the coin is launched the price will increase to more than 5 times the ICO price. This is what makes investors enjoy this ICO.

What are the disadvantages of the ICO

Behind the profits there must be losses that come to him. Because ICO is an investment, we spend money and give it to third parties and the money may not be used according to the agreement when ICO is run away without any information that is clear or better known as SCAM.

Some things become the problem of the SCAM when the ICO is unclear about the project, the purpose of collecting funds made by the developer and the team that is not clear or not displayed. Usually this will be explained in the whitepaper.

What is the relationship between ICO and IPO

The IPO is an Initial Public Offering which is an investment in a company such as Google, Facebook and will get a number of shares from the investment.

The most striking difference from the IPO and ICO is that the IPO when it comes to raising funds must be

through many regulations such as government institutions, financial institutions, permits and these are not fully accepted later.

While the ICO is simpler and easier without going through complicated regulations such as an IPO and can be followed by anyone who wants to make an investment. Uniquely, there is no minimum limit for investing in ICOs.

Form of ICO Investment

ICO is used in online investment which is more inclined to digital currency or cryptocurrency like bitcoin which is the first cryprocurrency

Hopefully this article can be a little helpful for readers who want to know what IOo actually is and want to start ico.

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1 Comment

ICO stands for Initial Coin Offering which means a start-up or team that is looking to run their project / project and use the ICO method to get funding (crowdfunding), by participating in ico by sending funds through the payment method specify that we will get tokens from the project.

Through the ICO method many advantages can be obtained:

Projects that are being planned can be quickly implemented and tried whether or not the project is successful

Can encourage the development / advancement of technology through ideas born of new start-ups that appear throughout the world

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this year a number of companies and startups raised US $ 1.4 billion via ICO. The ICO itself is fundraising to build applications related to Blockchain and its implementation such as bitcoin, smart contracts, and smart ledgers.

Through this ICO World Tour forum, Blocktech aims to help the Blockchain and Cryptocurrency industries in Indonesia reach global standards, "Steven said in a statement on Wednesday (1/11/2017).

At the event Blocktech introduced Sebastian Quinn Watson from Blockchain Global Limited as a strategic partner with a number of partners from Indonesia, Australia, Canada and South Korea. Until now, Sebastian and the team managed to collect more than US $ 310 million in the sale of ICO tokens this year.

For information, Bitcoin and other currencies are built on technology called Blockchain. However, not many people know that Blockchain technology can be used for other uses, such as building a decentralized database.

On the same occasion, Hope Liu as CEO of Exchimchaim Singapore presented the function of the Blockchain used by his company to develop the supply chain industry.

Blockchain is also used Gregory Van Den Berg, CEO of MiCai in Beijing to facilitate compliance with regulations in the field of wealth management.

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it's a trustbreaker but its been growing for years , before i got back on social networking i spent more time on steam to kill time that needed to die, a shameless way of making money on unfinished products with disclaimers that give you no guarantee whatsoever you're ever going to get anything

i didnt know they banned it there but as much as i'm against any kind of regulation by the government to "protect the people from itself" it might not be a bad idea for once

ofcourse, nothing should be just black & white, maybe they could consider an office to "apply" for ICO, where it can be revised to see if it has any chance at all or if it's just selling hot air to take the money and run.

and that, ofcourse brings it back to bureaucracy, unless they outsource it , in which case you get the same problem because private sector sharks will sell out to give licenses to those who pay

humans ....

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