What is initial coin offering?
Initial Coin offering is a strategic model, also known as a token sale. The model is prepared to raise the funds for the Blockchain based projects. The Blockchain developers release their token and sell it against the Cryptocurrency like Bitcoin and Ethereum. Once the token launched in the market the participants get their share in the form of cryptocurrency.
Are ICOs Legal?
If we leave the past and see the present era then you will see this sector is growing at exponential rate. Countries are accepting cryptocurrencies and regulating it. In future, you will see a huge potential in this sector. The legality of ICO initial coin offering depends on countries’ economic policy. For example, ICO is legal in the USA and it is illegal in Bangladesh.
How do ICOs work?
The concept of initial coin offering emerged due to Blockchain technology. Actually, ICO initial coin offering is a model to raise the funds for Blockchain based projects. Its process is simple, Blockchain developers found an innovative idea and they suggest it to the community. Once the project gets approved, they prepare a white paper, where they include the scope of the project, its vision, and all technical aspects. After white paper, to reach a maximum number of investors marketing campaign begins. During the marketing campaign, they elaborate all features and benefits of the project. ICO date is unveiled when the token sale is scheduled to begin. There is usually a defined time period to raise the required funds, after which the sale closes. Investors then start receiving their tokens and plans are made for them to go live on exchanges for trading.
What are tokens?
Tokens are a digital asset that is sold to the public during an ICO campaign, usually for other cryptocurrencies like Bitcoin and Ethereum. In Crypto terminology, the distribution of token during ICO campaign is known as AirDrop. Unlike other cryptocurrencies like Bitcoin and Ethereum, tokens do not have their own blockchain rather hosted on another Blockchain.
What are the advantages of token?
Usually, you will not get the instant advantage of the token; rather you will get its benefit when these tokens will be listed on major exchanges like Bittrex and BitFenix etc. Let allow us to illustrate, suppose you have received 1000 token worth of 500 USD if the ICO project becomes successful and the particular token listed on site like Bittrex, then you can earn 100 to 200 times more amount selling the tokens.
How to join, invest and participate in an ICO?
Well, CoinMarketPlus provide a hassle-free ICO platform; thereby users can join, invest and participate in ICO seamlessly. Here notable thing is that each ICO has a different rule to join ICO. On our website, you have to click on ICO calendar page and follow the instructions to participate in ICO.
Is it safe to invest in an ICO?
Yes, it is safe. But you have to make sure that you have done sound research before investing. If we talk about CoinMarketPlus, ICO rating and voting will give you a better idea that whether particular ICO is worth investing or not. We list the ICO after in-depth research that not only worth investing but also ensures the best return on investment.
Will CoinMarketPlus prove helpful to choose the best ICO?
Yes, here we have started the new initiative ICO rating and ICO voting. The rating and number of votes will give you a better insight into ICOs.
What happens if ICO did not reach its minimum CAP?
In most cases, the money is refunded into the investor’s account. However, in some cases, client go for ICO token sale forever until the minimum cap is ultimately reached.
What happens if token remains unsold?
In such situation only sold token will be created and issued. For example, if only 30% of the tokens are sold in the first round, then only 30% will be generated.
What makes a good token?
Well, in initial coin offering you cannot predict with 100% accuracy about good token or bad token. However, the success of the token depends on its team, the concept and the objective behind it. If the token achieves 100% market cap, then it will consider as good token.
Which is better Bitcoin or Ethereum?
In term of market cap, circulating supply, price, and volume, Bitcoin is superior to Ethereum. But when it comes to liquidity and scalability, Ethereum proves a better candidate for the long run.
- With $41,124,152,826 market cap, Ethereum is the second largest cryptocurrency, after Bitcoin. Every token built on Blockchain demands for Ether and liquidity to the network.
- The transaction on the Ethereum network is more fast and efficient than Bitcoin.