As a newbie in the crypto world, have you ever wondered how cryptocurrency organizations generate money to invent new coins and related projects? Well, they do this through ICO.
You will ask what exactly is ICO right?
ICO is an acronym for Initial Coin Offerings. An initial coin offering proposes a means to put up funds for projects that have to do with cryptocurrency.
Crypto organizations introduce an ICO when it is required to put up money to develop a new crypto project or related service, this action is the same as Initial Public Offerings (IPO).
Tokens which are usually a special cryptocurrency are given to investors in exchange for their financial involvement in the project.
ICO is preferred to put up funds for the growth of new crypto projects and services. This is achieved by creating and selling tokens to society to put up capital for the project.
The way ICO works
Crypto organizations release a white paper that talks about the plan for a new invention or project, it also talks about fundraising which is the amount of capital that is needed to commence the project, the aim and the objectives that it wants to achieve, and much other information is included.
The information written on the paperwork is usually made available for investors that are enthusiastic about the ICOs to know if it will be okay to support the project or not.
How good is ICO?
Several ICOs have generated significant profits for investors, while others have failed due to poor operation.
For a newbie that desires to partake in ICO, it is vital to know that ICO is legal and one is expected to know the basics of cryptocurrency exchanges and wallets. You should buy a crypto project that is doing well because some ICOs are defrauding.
The first step in investigating an ICO is to read the white paper. A hazy or poorly written white paper may indicate that the project has not been thoroughly planned.
Next, look into the team members individually and as a group, as well as any business partnerships. A more experienced team will be better able to navigate the challenges of a competitive business environment.
finally, Once you’ve decided on an ICO and invested in it, you should keep at least 50% of your tokens before selling them again.
WarriorGame is one of the play-to-earn games that aims at using the open world’s abundant resources to give people a diverse range of services and provide creative ways to obtain revenue.
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