ICOs are unique as they deal with supporters than the investors. It is fact that most crowdfunding and contributors will expect a return on their investment. There are some similarities to crowdfunding and Initial Public Offerings. In the economy of transformative technology, the innovators are constantly learning the ways to provide capital for new firms at mark curry loans. ICOs are considered as an alternative for startups and also for the existing companies to raise the frauds of a traditional venture capitalist.
The financial authorities also have some potential for fraud. Due to this reason, ICO’s are banned in some countries, including South Korea and China. ICOs are treated as disruptive innovate tools from the first token sale in the year 2013. The ICO’S are not regulated currently in the United States by the Securities and Exchange Commission. However, the investors and supporters are suggested to be cautious of ICOs.The challenges have not slowed down ICOs, as they are highly popular. Ease of market, quick liquidity and regulatory freedom and quick liquidity are a few reasons for the rise in the trend.
The Innovation of the product:
The freedom from the regulation will provide the innovation along with the ease and liquidity of the product. Startups can raise money quickly when they leverage this tool without the need to going through having to go through investment banks or venture capitalists. It means that investors can get a return on their investment very quickly. Even though the ICOs are increasingly popular, there are also a few reasons why investors should be aware of the funding method.
The scams and fraud will run rampant through the ICO campaigns. The absence of regulatory guidelines for ICO’s will provide an easy target for a scammer. The startups will use them to cover their development fees. Hence, you are investing in a concept but not on a product then try for mark curry loans. So the method of raising capital in a startup environment will pose a financial risk compared to the traditional methods. Therefore it is more dangerous and risky for investors and secondly, there is no actual product. As per the TechTalks, ICOs will happen before a product is built.