Share:

What is your view of an ICO? Is it a form of currency generated for the company by the company? For instance, if I have a service and I want people to buy my services/products at a seriously discounted rate, Ill offer them my coins which they can then use to purchase my services later on. Or they can take my coins to an exchange, move it to another currency to purchase the services/product of the company whos coins they have changed it for. Is this the new economy of things? I am finding it very promising! Whats your thoughts?

Lets take my company (XYZ Inc) for example. I want to create a niche market for my product (ABC instruments). My product is priced at $1 in the current market space. I launch my ICO with a token priced at $0.25 with a projection of it reaching $2. You can purchase this token now and keep it in a wallet for when you need to purchase my product. So technically, you will have pre-booked the products at half price minus fees, taxes and all those ad-on expenses. The added advantage you have with this system is, you can take these tokens to an exchange and swap them for some other companys tokens to be able to purchase their product at a similar discount. I love this system. It is literally bringing finance into your hands. You dont need to keep track of your bank account and you can sort your wallets according to your needs and your future plans. I can have a wallet for travel (Darenta, BitAir, etc.), for buying a car, buying a house, buying groceries, and what else have we. Theres a token for almost everything out there today. You may ask, why should I have a token for buying stuff when I already have my own money? Let me ask you, how much money do you "think" you have? Where is it? Is it in a bank account or cash kept in your home safe? If its in a bank account, how safe do you think it is? Go back to 2008, or 1987. Two of the biggest market crashes in history. The advantage I see in the ICO system is that I end up having the coins in my own wallet and not in some unsecure bank account which can go bankrupt at the drop of a hat. And I can use those coins as and when I wish and not be tied down with bureaucratic rules and regulations, wherein, my money can be blocked at the whims and fancies of the "controllers" of my money.

That. ladies and gentlemen, is the positive side of this new trend. The "Economic and Financial Revolution", if you like to call it that. But, as with any system driven by humans, there is a downside. There are crooks and thieves lurking about at every corner. Be it behind the ebony desks of the Reserve Banks, MNCs or in the political corridors, they are everywhere, even in the newly founded cryptocurrency system and so called digital world. Make your investments after due diligence and proper research.

Never invest in an ICO before researching the company and the people behind that company. The internet has no dearth of knowledge. You just need to know where to look and how to read between the lines. Check and understand the pricing of the ICO token. Check company valuation and compare that with the number of tokens being issued and their valuation at the time of the ICO. e.g.: If the company is only worth $100000 and they are issuing 1 million tokens priced at $1. Where do you think the price is going to go after the launch? I have rarely seen a company launching an ICO inform us of their current financial records. But then, thats not the only criteria. Maybe, their company can be worth a million dollars after the ICO if they have a good team and are intending to put your hard earned ETH and BTC to good use. Look at the plan, look at the people look at thwt they have already achieved. But another factor which is quite important is, look at the timelines. You dont want your ETH and BTC tied up for years. Anything can happen in a years time!

At the end of the day, ICOs are a blessing, they are a good thing, but be careful!

Comments
Leave a Comment