What Is ICO: Not too long ago, Bitcoin went through the process of coming into existence and holding promises of a potential future, even though it was interpreted and understood as an absurd step towards digital currency. In the years since Bitcoin matured, the cryptocurrency ecosystem has exploded. In the midst of the ever-accelerating birth rate of newly launched coins, there is a type of transaction called an “Initial Coin Offering” or ICO. An ICO is a financial support seeking tool that involves trading cryptocurrencies intended for the long term in exchange for a quick value of current cryptocurrencies. According to The Financial Times, ICOs are not supervised by cryptocurrency supply and distribution laws where investors can invest money.
On the other hand, The Economist describes ICOs as digital tokens issued on the indelible distribution of records and blockchains.
To conclude, we can say that ICOs are the new portable catapult that gives way to nascent cryptocurrencies.
Laws: Smith + Crown explains that most ICOs are sold software tokens that relate to the time before they are available for purchase. To circumvent legal needs, ‘crowdselling’ or ‘donation’ instead of ICO are the commonly used idioms now.
Is there a possibility that ICO will slow down? In this sense, Crypto Hustle writes in a recent article that the ICO hysteria is caused by those people who adopted Ethereum as early as possible and are now interested in returning. So it cannot be assumed whether the pleasure-seeking phases will last long or not, but when the rectifications arrive, we will see which cryptos stick around.
If ICO is a safe buy: If you are a risk taker and not a risk trader, paying no mind to the end of capitalism, or to the fact that this very issue could bury you, without capital, then go ahead, it’s your call.
Now that we have gathered information about ICOs, let’s move on to the last question.
What is the future of ICO: According to reports from a 2017 survey, “about 46% of ICOs did not make it to the realization stage despite raising about $104 million.”
Reasons:
- Higher risk of investing in cryptocurrencies.
- Draconian regulations.
- tough competitions.
- Decreasing performance.
- volatile nature of cryptocurrency
China has banned ICOs and Russia has brought out a completely different set of rules and regulations for ICOs with the promise that investors can sell their tokens again. ICO promotions on Google and Facebook are difficult, and Twitter deliberately banned fraudulent crypto accounts. Do higher authorities believe that the blockchain has an ICO living future purpose? Your future rots inside your own skin from struggles to cross that extra bridge to prove your credibility.
Then yes. The death of ICOs is indeed looming and before we know it, it could blend in and disappear like it never existed in the economy. But there are still some coins that may become the next Bitcoins, so you should keep an eye out for the best ICOs.