Bitcoin started the cryptocurrency phenomenon in 2009. Now, nearly 10 years later, it has seen its value exceed $18,000 per coin on occasion and other coins have flooded onto the market. The most common means by which a cryptocurrency begins life is through an initial coin offering or ICO. This is the cryptocurrency equivalent (in some ways) to an initial public offering (IPO) in the stock market only without any of the regulatory oversight.
This lack of regulation is one of the key reasons cryptocurrencies exist, to offer a completely free financial alternative to the regulated currencies of the world. For those seeking to shake off some of the shackles of government regulation, it is very appealing. On the other hand, the lack of regulation makes it easy for scams to take place. So, if you are interested in cryptocurrencies as an investment, how can you tell a good ICO from a bad one?
A little research first. According to an article by Statis in their newsletter, Medium, 81% of all ICOs are scams. That is a huge percentage and is a major reason why a lot of big money investors steer clear of the cryptocurrency markets. But that leaves nearly 20% of all ICOs that are legitimate and offer investors a potential return on their investment.
Another article from Medium, provides some advice on how to spot the good ICOs in this wild, unregulated world. Before we get into that, please keep this cardinal rule of investing in mind,
“Do not invest money you cannot afford to lose.”
Every investment carries some form of risk unless they are government backed bonds and even those are not entirely immune to loss. So, approach each ICO with money you can lose and not hurt yourself financially.
Right, so what do you look for? Look at the product or service the ICO is going to fund. Is it strictly a concept like, “I have this great idea and need money to make it happen.” or does the company have a working model or even some sales? It makes sense to stay away from the first category. That is speculative investing at its extreme.
So, you find an ICO with real, tangible products and services, what else do you look for? You want to learn about the company, the team, their capabilities, their business model, and how they plan to use the proceeds of the ICO. Look for a whitepaper or another form of prospectus for this information. If it is not available or lacks depth and detail, you should probably keep looking.
The third thing to look at is how the coin is being presented in terms being needed or is it just copying other cryptocurrencies to ride the wave of success they have created. If the coin and blockchain technology form an integral part of the product or service being offered, that is a good sign. Coins being offered just because cryptocurrency is in fashion are less likely to succeed in the marketplace.
Finally, there is another rule of investing that serves people well,
“Invest in companies you like, use the products/services of, or that have products, services, and corporate principles that match your own.”
CRIP.TO is about to launch an ICO. We are teaming with experts in the field to do it the right way. Here’s how we stack up against the recommendations listed above:
- Our products, Black and Shield, are in the final prototype stage and have been successfully demonstrated at public events.
- We offer a comprehensive whitepaper that explains our strategies, philosophies, how the coins will be used, and profiles of our core team members.
- The coins raised will be used to incorporate the lessons learned in our beta testing, set up production, begin manufacturing, and fund a variety of other business tasks.
- The coins will be used to pay for the CRIP.TO products and services.
- Blockchain technology will be an integral part of CRIP.TO service delivery and user authentication.
CRIP.TO is driven by the libertarian philosophy that a free democracy requires freedom of speech without fear of suppression or censorship. The high level of surveillance and monitoring by governments and bad actors today can have a dampening effect on free speech. The fear of losing personal data or having an identity stolen is also stifling.
Our products and supporting stack of services are designed specifically to provide the most secure form of electronic communication and transactions available to individuals, organizations, and companies. We are dedicated to giving everyone the freedom to communication fearlessly. The ICO will enable our company to deliver on this vision.
Learn more at CRIP.TO today.