You’ve probably heard of an IPO before, but what is an ICO and how is it different?
During IPO investors buy stocks which translates into ownership shares of that company. But in an ICO or an Initial Coin Offering, they buy cryptocurrency tokens. Likewise IPOs, ICOs have a fixed start and end date, and often there is a bonus structure involved with investing earlier. For instance, investing at an early stage may get an investor 10 to 20 percent more of crypto coins.
In summary, ICO is when a blockchain company has an idea to build something new (product or service) on blockchain but unlike typical businesses, the blockchain company raises capital from the general public similar to crowdfund instead of going to venture capitalists, angel investors, and private investors. And instead of handing them equity or shares of their company during an IPO, in an ICOs they distribute the tokens. In short, ICO is the method of announcing new crypto coin, funding blockchain based startups and raising capital for them.
Deciding which cryptocurrency to invest in, if any, can be a little bit confusing. There are more than a thousand cryptocurrencies in circulation right now with more being introduced almost every day.
During an ICO there is two kind of tokens you can buy. The first is utility token. It meant to be used to buy goods and services offered by the company that developed by that cryptocurrency. This is just like when you go to arced and exchange money for game playing tokens. They meant to be used in the machine at that particular location and nowhere else.
The second type of token is called security token. That does mean they are safer. Security refers to financial securities. You are buying in the companies like you would in IPOs but you don’t the equity that comes with regular stocks. So why would you be buying? The expectation is that those tokens will eventually worth something once that company develops the way for people to spend them. If demands go up early investor can sell their token for profit. But until that happens you are taking a bit of gamble. ICOs are still not clearly regulated as IPO in the US and most other country making it a bit easier for scammers to take advantage.
Which are the most promising ICOs of 2018?
Till now 2018 has been proved welcoming year for the ICOs and investors are looking forward to upcoming cryptocurrency ICO with the best potential. We have prepared the list of the most popular and promising ICOs of 2018 which may make you the millionaire. Here is the glimpse of the best ICO’s to invest in 2018.
NeonExchange (NEX) is definitely one of the hottest ICO of 2018 as it is the platform designed to overcome the issue of both centralized and decentralized exchanges are facing today. The problems with centralized exchanges are increasing the number of scams, security, identity theft and many other. On another hand, the decentralized network can easily obsolete all the issues associated with centralized exchange but it makes the whole process slow. NeonExchange is the platform that will create most reliable, secure and faster DEX. Neon is already quite a popular and considered as Chinese Ethereum and that’s what has brought it into the limelight.
Cointed – CTD
China-based ICO, Cointed (CTD) is said to be the most promising ICO of 2018 as it claims to bridge the real world and crypto space by proving various payment solutions through their exchange. Cointed is aiming to build cryptocurrency base payment gateways on online shopping site, multi-currency ATMs and much more. The products and the services they claim are quite promising and revolutionary and attracted the gaudy amount of money from the investors. The presale and ICO are already over and the network seems growing impressively especially in Europe. Like major potential ICOs, this one also requires users to go through ICO KYC and AML process in order to acquire CTD tokens.
There is the myriad number of ICOs which can be considered as the most promising ICO of 2018. Check the full list of best ICOs to invest in 2018.