Bitcoin is the first digital currency of cryptocurrency. Satoshi Nakamoto wrote his paper in 2008 & Bitcoin, a digital currency introduced that built on the blockchain network. Blockchain is a decentralized distributed ledger, an open source database where transactions are recorded & stored.
Information is cryptographically stored across block; these blocks are mined by solving a complex mathematical problem. These are connected with already existed blocks & develop a blockchain.
Blockchain is immutable & nonreversible. The information available on blocks are cannot be altered because the nodes/computers are connected around the world. Any alteration can easily be identified.
The blockchain technology revolutionized the world economy & it birthed to new form of fundraising- Initial Coin Offerings (ICO).
What is ICO?
Initial coin offerings (ICO) is a process of capital raising by blockchain based company. Company offer digital token before launch a coin to general public to raise capital. People who purchase tokens are actually supporter of the ICO. They contributed in form of donation with using bitcoin or Ethereum.
The contributor of ICO get limited number of tokens at discounted rate which gains worth later at the stage of sale of token. In case, company failed to raise required funds, it has to return the invested amount of the supporters.
The ICO passes through different phases like announcement of digital token, the offer of the token, marketing campaign & sale of the token.
Little Investment & enormous return:
Traditionally companies often find the way to get handful amount of money by venture capital. With the introduction of Blockchain technology, companies investing little amount around $40,000 to $50,000 investment, they are able to earn enormous amount of fundraising.
Usually, companies offer Initial Public Offerings (IPO) which are launched by regulated companies registered in Security Exchange Commissions or regulated body of the concerned country. The company need to meet all compliance regulations, comprehensive legal requirement, contract & terms conditions & a lengthy paper work requirement.
The rise of ICO is the main reason that it is not regulated through strict compliance like IPO. Besides this, with little investment, companies are able to generate millions of dollars in the shortest possible time.
The undernoted list of ICO is showing the fund-raising amount:
|Initial Coin Offerings (ICO’s)||Fund raised|
There is a long list of rises of ICOs that raised enormous crowd sale.
Rise of ICOs in 2018:
In 2017, over 200 ICO company’s funds generated around $3.2 billions around the globe. The trend of launching ICOs remained growing & it should continue in 2018 with somewhat limitations. The boom of cryptocurrency attracts money laundering & tax evasion across the border.
The regulatory bodies are more concern & have been taking strict regulatory actions to stop it. China has banned ICOs & South Korean also took measures with deep concern. Besides this, It does not route through Securities & Exchange Commission.
“Sasha Ivanov, CEO of waves expressed his thoughts to CNBC that mostly ICOs which offers big discounts & lucrative profit is nothing but a scam”
Now investors are warned to invest into ICOs with great due care & agencies of different countries have been working to deal with cybercrime & fraudulent activities of ICO offering companies.
Launch of ICO 2.0 a superior token in 2018:
Considering different aspects, scams, non-transparency of ICOs, Ethereum founder, Vitalik Buterin stated that around 90% of present ICO project would wipe out & should lead to the creation of superb tokens which are called ICO 2.0 in future. ICO 2.0 has distinctive feature to associate a company with digital certificate of title.
The number of ICOs should be limited in 2018 covering mentioned below reasons:
- ICO’s should be scam protected
- Business plan of ICO startup should be realistic & implemented in the real world
- The ICOs startups have operational Capability to carry out business plan
- The company offer exclusive wallet security that protect the investment of the supporters.
How to find worth of Investment in ICOs:
Booming cryptocurrency industry is considered the best investment option in digital coins & launch of ICOs. It works on principle of appreciation of money.
Lucrative profit outcomes on investment in the money of internet. Before investing into any ICOs or cryptocurrency the following factors should be determined to make better investment decision.
Considering factors connecting to the ICO, technology cannot be overviewed. Technology is the root cause for success or failure factor of a digital currency.
It should be noticed that the network built on blockchain should be verified. It should be considered that ICO or cryptocurrency built on Bitcoin Blockchain or Ethereum blockchain or has compatibility to run smart contracts. Every cryptocurrency has its own blockchain. Developers are able to executes transactions using concerned currency blockchain.
Blockchain technology of ICO’s or currency has potential to offer wide solutions for developers to run smart contracts.
The technology should be embedded with decentralized plate form connects with individuals without central authority where activities of buying & selling perform with instant transactions with lowering cost. Like REX, peer to peer decentralized plate form offering real estate multiple listing services solutions.
It is noteworthy that digital currency is listed on which exchanges. There is a list of well reputed exchanges like Coinbase, Bittrex, Bitfinex, Poloniex are considered trusted exchanges for trading of digital currencies.
The technology working behind cryptocurrency ascertains the security features. Security features protect currency & stop hacking from pilfering the customer data.
Currency using private key encryption to verify transactions, registered with reputable exchanges, insurance covering attributes ascertain the security features
The ICO or cryptocurrency has capability to maintain online digital identity immune to threats to hackers.
Usually, offline hardware storage is preferable where coins can keep protected from threats of hacking.
Team & the idea working behind ICO:
Strength of any project can be better evaluated by reviewing the team of Professionals & developers working behind ICO. Professional expertise & experience to the relevant industry, what contribution team members has been made before to invent the future.
The services of the professionals have been acknowledged as visionary figure who received any recognition on introducing innovative technology by prestigious organizations.
The vision of team can be accessed by its white paper, act as modus-operandi for execution of the project. The idea working behind the project has potential to attract attentions of investors. The idea endorsed the immediate solution to the existing business problem.
DIMPPAY ICO facilitates payment system around the globe with low transaction fee & instant payment mechanism. DIMPAY built on blockchain of NEM that accelerate P2P, B2B, B2C & C2B areas of transactions.
DIMPAY Wallet & Mobile Wallet:
It also offers wallet to secure digital asset & the asset is linked up by the Debit card. Mobile wallet of ICO has tremendous ability of connecting with the users account & allow user to make payments in multiple currencies.
Dispute Resolution Dialogue
The ICO generate Dispute Resolution Dialogue, a feature of resolving any conflict between buyer & seller.
DIM Debit Card
Users of DIM Debit card are able to convert their coin & altcoins into selected currencies like EURO & GBP. It has worldwide access. The company also envisages to use of ATMs in future to withdraw funds.
Marketing strategy is running on successfully through advertisements & publications.
The roadmap of ICO is easy to understand which is spread by the fourth quarter of 2018. Company has also plan to launch beta version software till third quarter of 2018.
Professional team is on the back of the ICO with the expertise that develop a unique project.
Business model is unique that is workable in the real world & generate value to the project.