The pros and cons of investing in Crypto ICOs

With Crypto ICOs you can lose a lot of money ... if you do not know what you are doing. It has advantages and disadvantages that you have to weigh up against each other.

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ICO stands for Initial Coin Offerings. It is already compared with IPOs, the stock market flotation of a company to the stock market. But in fact, an ICO is more of a crowdfunding based on the blockchain. Yet these ICOs are particularly popular.

A startup called Banco raised $ 153 million in ICOs in hours. The last successful ICO was that of Status.im where investors deposited $ 64 million to finance this project. Blockchain entrepreneurs already raised $ 327 million through ICOs in 2017, more than the $ 295 million through venture capital.

What do you buy from an ICO?

At an ICO you pay for tokens. These tokens are part of the application that the company wants to build. When this application becomes successful, the tokens increase in value and you can earn money. Most of these applications are built on the Ethereum network.

The big money for ICOs comes mainly from Asia. They hope to get tokens through the ICOs and become shareholders of the next Google or Facebook. But for the same money, you are a shareholder of the following MySpace or Pet.com. ( Who? Yes ... )

Unlike IPOs and shares, ICOs and crypto coins are not regulated. In other words, you have to trust that the information provided by the publishers of these ICOs is correct.

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@therealwolf 's created platform smartsteem scammed my post this morning (mothersday) that was supposed to be for an Abused Childrens Charity. Dude literally stole from abused children that don't have mothers ... on mothersday.

https://steemit.com/steemit/@prometheusrisen/beware-of-smartsteem-scam

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