Wise words for cryptocurrency buyers– Exploring ICO Token Development

Posted by blockchainoodles on September 17th, 2019

A real DApp ICO is similar to an IPO. ICO Token Development is the creation of cryptocurrency DApps. Public can invest in such ICOs in the same way shareholders invest in shares stocks. However, there is always a risk in any time-dependent investment. Apart from this, scams are rampant in the internet ecosystem, especially, when a vertical involves loads of money. ICO industry is also marred with such malicious aspects. It necessary for investors to be cautious while planning a big buy. Prospective investors in ICO should know if the currency is worth buying, and more importantly, if it is authentic.

Checking the background of ICO Token Development

Interested consumer needs to check the background of ICO Token Development of the particular cryptocurrency. It is necessary to know a bit of technology related to blockchain, ICO, and how transactions are occurring in the market. An effective way to start researching a DApp ICO is to find relevant publications about it. White-Papers, research documents and technical information about the DApp are the most important.

Since blockchain technology is open source, ICO Developers make their codes available online on platforms like GitHub. After finding white-papers and codes, users need to verify if they are correct and not plagiarized. A real ICO token development is backed by a unique code, which is logical and of course strong enough to support the objectives and functioning of the DApp. Evaluating white-papers provide a strong gist of the technical feasibility of the DApp.

White Papers and research documents also describe the background of an ICO. Blockchain technology offers an innovative solution to many real-life problems. This technology is the new face of secured and transparent internet, based on powerful encryption. The objective of an ICO is not only to offer an investment opportunity but to make an industry easier. The first ICO, Bitcoin was created to make financial transaction secured and transparent.

ICO like BAT, Basic Attention Token, created by Brendan Eich, addresses many practical issues in the digital advertising industry. This facet of a cryptocurrency DApp is a parameter to evaluate the ICO. Users must evaluate if an ICO is relevant as per its objective. If this objective is relevant enough, it would certainly grow in the industry.

Sometimes common sense is enough

ICO is practically a company. It is supposed to have a proper team with proper designations. If a single person is playing different roles, if the CEO of the ICO does not have proper identity or reputation, or there is no information about the background of the company, the ICO is probably a scam. There were instances where CEO of an ICO endorsed by top celebrities did not even exist. It was found that the company was fraud.

Other few signs indicating a probable ICO fraud are general aspects like over endorsement, hyped in social media, and guaranteed profit. Any cryptocurrency that promises good returns has hired professionals to endorse are creating a buzz over the internet need more stringent scrutiny. Investors should realize no ICO can guarantee a profit since it is dependent on its adoption as a technology. There were popular ICOs, which were later found to be Ponzi schemes.

ICOs are powerful innovations that fulfill certain criteria. Real cryptocurrencies are not tough to understand. They have proper background, technology and a community behind them. However, cryptocurrencies, provided by cryptocurrency  development services, are not different from IPOs or public shares that depends on the market as well as the technology. As shares can get massive profit, so are cryptocurrencies. Similar to share stock investors, ICO buyers should also research properly before investing on any digital currency.

Source:https://blockchain.oodles.io/blog/cryptocurrency-ico-token-development/