What is an Initial Coin Offering (also known as a token sale)?
An Initial Coin Offering (ICO), also known as a token sale, is a method that is used to generate funds for a cryptocurrency venture. This offering can be used by startups to skip the rigorous and controlled capital-raising procedure demanded by venture capitalists or banks. When a cryptocurrency start-up company would like to raise money through a first coin offering, it normally produces a strategy on a whitepaper which says what the job is all about, what needs the job will meet upon completion, how much cash is required to tackle the partnership, how much of the digital tokens the leaders of this undertaking will continue for themselves, which kind of cash is approved, and the length of time the ICO effort will operate.
Beware of Pump And Dump ICO’s
You want to find an ICO that has something legitimate behind them, something with an established company, with a great management team or an exceptional piece of technology. This is especially important if you’re looking at an ICO as a long term investment. A lot of token sales are just “pump and dumps”, meaning a sketchy entity tries to convince you to put up money into there venture. As soon as the crowd sale ends and the tokens are distributed, these individuals sell all their tokens and your tokens plummet in value. A lot of token sales are meant to just be a method for quick profit for company insiders with little regard for outside investors.
Unikoin gold is an example of a token sale that has tremendous potential and a great company behind it. Esports gaming is a huge industry that is growing rapidly every year. The company behind UnikoinGold, Unikrn, is at the forefront of the esports gambling industry. They have a strong management team with experienced entrepreneurs and strong backing with likes of Mark Cuban being one of their early investors. Before investing in a token sale, you want to see a credible company in a growing industry like Unikrn. Do thorough research behind any company you are considering giving money to for a token sale.
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