By Steven Krohn · September 23, 2017
Raising money is an important aspect, be it for individuals or for companies. It is one of the best ways to attract ICO investors. The need to raise capital has bred various methods or concepts that produce excellent results. None has become more prominent than Initial Coin Offerings (ICO).
Before delving further into what it takes to attract potential investors, exactly what is an ICO?
In simple terms, an Initial Coin Offering (ICO), is about selling of digital currency. Initially, the currency is sold at a discount. An ICO certainly can be a great method for a company to successfully raise capital.
When the value of a crypto-currency appreciates, the investor makes a profit. The process is centered on speculation comparable to executing an IPO in the stock market.
There are certain differences pertaining to Initial Coins Offerings (ICO). An ICO does not offer any rights of ownership to a company. Additionally, there is no ability to collect dividends.
In an ICO, buyers are diversified. They can range anywhere from the small investors (crypto-currency enthusiasts) up to the well-established venture capitalists.
Investors in an ICO are highly motivated by the explosive growth often realized in the value of crypto-currency. It can be considered high risk to invest in an ICO. The potential of substantial returns makes it a risk worth considering, depending on your risk tolerance.
In today’s world, an ICO can be considered one of the best investments available. It’s the place to be if you are looking for cutting edge opportunities.
ICOs are causing disruption in the markets, thus they represent a direct threat to venture capital businesses.
Since ICOs are about the selling of digital currency, the best way to attract potential investors begins by identifying the best platform for the transactions. The choice of a platform is a vital first step in being successful in your ICO. This is absolutely imperative to ensure a foundation for a lucrative ICO.
When selling on a well-chosen platform, the potential increases substantially for selling your digital currency for an impressive gain. This often happens when investors get drawn into a bidding war.
The chances of earning a substantial and profitable bid will markedly improve when executed on the proper platform. To attract potential investors to your initial coin offering, it is important to establish an enabling environment that can support efficient and effective trading.
ICOs are not confined to any one particular country. There tend to be very few regulations and restrictions imposed on ICOs. An ICO can take place anywhere in the world.
The good thing with Initial Coin Offerings is that most governments recognize them and tend not to interfere. In many cases, a country’s security exchange commission will require that private organizations file full disclosures. This is required whenever private equity is raised.
Remember that virtual currency is taxable. A capital gains taxable event applies whenever virtual currencies can be exchanged for dollars.
Governments usually only step in to ensure there are no violations of security laws relative to your ICO.
To attract ICO investors, private money has to be raised. This must be done in a well planned, thought out and most professional method.