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Pros and Cons of ICO

ICO has more pros over IPO . As ICO uses Token for its crowdsale , this made users to move towards tokens from cryptocoins. Let us have a look at the benefits of ICO .<br>

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Pros and Cons of ICO

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  1. ICO Pros and Cons

  2. Pros of ICO Token Offering Concept : ICO concept paved the way for the introduction of Tokens. In ICO , the issuers of ICO provides tokens or sells their tokens to investors for their fundraising. The utility token helps investors to claim for services/ products after the launch of ICO.

  3. Pros of ICO Duration and Investors Coverage : ICO is not so easy and requires lot more time from planning , white paper writing , token creation , fund collection , untill the success of ICO it is a long process. But as compared to IPO or Intital Public Offerings , ICO requires short duration. In IPO , there is no possibility of finding all interested investors , whereas in ICO moreover we can able to cover all interested investors so as to make ICO successful .

  4. Pros of ICO Decentralization - Blockchain : In ICO , the status of ICO at each time is written on the Blockchain , a distributed ledger which allows all investors to know about ICO process day by day . This concept of decentralization prevents the fraudulance activity by issuers over investors through ICO .

  5. Cons of ICO Absence of Security Token : As all ICO provides only utility tokens for investors , ICO is considered as less security in recent days. This is because of the invention of security tokens in the crypto world . Security token contains all details about the fundraising process and allows investors to claim for profit/share after the launch of ICO process. This new form of ICO which supports security tokens is known as Security Token Offerings or STO .

  6. Cons of ICO Not a guranteed Process : ICO is always considered as a unregulated process from both issuer as well as investors end. This is because , investors are not sure of profits for their invested cryptocurrency and issuer is also not sure about the success of his ICO . There are more ICOs that results in unsuccessful.

  7. Cons of ICO Openness nature towards Investors: ICO allows everyone to take part as an investors . This creates a situation for people who doesn't know about all its concequences to invests in ICO , which creates difficulty when there comes unsuccessful or fraudulence results of ICO. To know more in detail just read the blog : Advantages And Disadvantages Of Initial Coin Offerings (ICO)

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