A Comprehensive Guide to the Next Generation of ICOs & Crypto Funding🔎

Part 4

SECTION A | ICO 101 | QUICK INTRODUCTION TO ICOs |

1. Pros and cons of participating in an ICO as an investor

10 Advantages of participating in an ICO as an investor:

• Early contributors can have access to and will have more liquidity in early stage companies. Being early also increases the potential for rapid capital growth;

• Depending on the ICO, there can be a big network behind it (e.g. if the token launch takes place on the Ethereum network), generating additional buzz and potential capital appreciation;

• Custody without intermediaries. The one with the private key owns the tokens;

• Limited regulatory scrutiny (so far);

• ICO coins have the same anonymity as cryptocurrencies such as BTC and ETH;

• Transparency of use of funds, an escrow can be used to verify how the funds are being spent after the ICO;

• An innovative way to deploy capital that offers a hedge against political and economic shocks;

• Contributors are usually the first users of the (utility) token — thus unlike holding a stock of a company whose products a contributor never used, ironically tokens can be more tangible than securities;

• A high risk, high reward asset which is (to some extent) disconnected from the stock market and the economy;

• Possibility to own an alternative asset not based on FIAT (state regulated) currency.

Read full guide: https://hackernoon.com/a-comprehensive-guide-to-icos-crypto-funding-the-rise-the-boom-the-bust-the-next-b159fdf38010

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