What is an ICO?

1. What is an ICO? An ICO, or Initial Coin Offering, sometimes also called a “token sale” or “initial token offering”, is a practise of crowdfunding for blockchain projects, where a cryptocurrency or token is offered to early investors, before being listed on the wider marketplace, such as exchanges. ICOs are high-risk investments, so caution is advised when investing. That’s why the most important aspect of participating in any ICO is doing an extensive research around the project. This includes reading the whitepaper, working out whether the ICO provides real world value and researching the team in detail. To participate in an ICO you need to: Own the relevant cryptocurrency that the ICO is accepting as investments. Make sure that the cryptocurrency wallet that you are sending the funds from is compatible with the ICO token. Triple check the deposit address from official sources. Any error will result in a loss of investment. An ICO has achieved its goal once its soft cap is reached. The soft cap is a minimal amount required for the project to move forward. Most ICOs will also have a hard cap, which is the maximum amount that they will accept in investment. If an ICO fails to reach its soft cap, most ICOs will return funds to investors. Additionally, some ICOs require investors to provide their personal details as part of the KYC or “Know Your Customer” and whitelist processes, while others are only available to private investors. ICOs allow the funding of some of the most innovative blockchain projects in the world, but it is always essential to do as much research as possible before committing to investment and only investing what you are willing to lose. Website like https://cryptototem.com validate and analyze upcoming ICOs and give them a score based on many different paramters.