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Guides

Should I Invest In An ICO?

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Among many reasons, the opportunity to be a part of a rewarding investment and profit-making are the major reasons why people choose to invest in an ICO.

During an ICO, investors purchase the ICO tokens that are sold, it is called “crowdsale”, which provides them so many benefits and advantages. They believe that the project they are investing in will become successful and their token will increase with time.

For example, the Ethereum blockchain plan that was projected realized USD 18 million in bitcoins in the year 2014 through the sales of its coin, Ether, that was charged at USD 0.40. As at December 2017, the price of Ether was USD 750, which implies that, if you had invested in Ether coins when the value was USD 100 in the ICO period during 2014, your investment value would have increased to more than USD 187,000 in December 2017.

However, it is not only the increase in worth that is to be benefited by an ICO investor, but there are also other things to expect too. Smith+crown, a research organization that is specialized widely in the study of blockchains, crypto finance and tokens, claimed that by investing in ICO’s, those people will be embellished with certain rights:

Payment rights: where the payment for a platform will be by means of token only and services will also be charged by the token.

Access rights: for the platform to be used by any holder, it will demand a token to gain access to the platform.

Contribution rights: this right will allow holders to be a functional part of the network, that is, they will also have the responsibility to maintain any network that doesn’t entail the creation of blocks for a blockchain.

Profit or fee rights: when the money realized and the profits are shared and distributed among the token holders too.

Governance rights: this is when the holders have the power to affect and control the structure of the projects, the instructions, observations and every other thing the project entails.

Block creation rights: this is when it is the holders that decides who protects the blockchain of the project.

Nevertheless, this guide is just for starters who have interest in becoming an ICO investor. In any case, if you desire to know everything it takes to be an ICO investor, personal research and thorough self-education is advised. It will enhance your knowledge and give you a better understanding of how to invest in ICOs.

Ashton Felix is currently a contributing writer for multiple crypto news sites. He got his big break when he mined his first bitcoin back in 2012. He enjoys learning about new technology and travels throughout Asia in his spare time. Ashton immediately fell in love with the culture and people of China. He is currently based out of Shenzhen and is fluent in Mandarin.

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