Top 4 ICO Benefits of Investing in Cryptocurrencies
ICOs, on one hand, offer massive return on investment, but they are volatile and risky on the other hand. Although people are discussing ICOs and the cons associated with them but big financial institutions such as JPMorgan has started thinking of investment in cryptocurrencies. ICO cryptocurrency marketing and settlement costs are lesser than traditional IPOs.
Let’s take our conversation ahead and discuss the benefits of ICOs.
Return on Investment Is ImpressiveBack in 2013, if $1000 was invested in Bitcoin, the worth of such investment moved to around $400,000 in November 2017. Also, if an ICO becomes a success, the ROI is potentially high for the investor. How would an investor know if the ICO is worth enough for investment? First an investor must know the crypto market trends and the ICOs trending.
Stronger the Network, Better the LiquidityIn order to realize the profit, a buyer or investor who has the equity finds someone who can buy the equity or either wait for the acquisition. In case of ICO, the cryptocurrency builds a solid network (such as Datum network of 56,000), the investors get more liquidity and can sell their cryptocurrencies for dollar instantly.
Execution with a DirectionIn IPOs, startups often pivot because of a number of factors and one of those is the investment or venture capital. But in cryptocurrency ICO, direction of a startup is very clear. When you invest, you know what is the idea behind an ICO in the form of a whitepaper. In this document, token supply and the allocation is specified.
More Funds in Lesser TimeOne of the best advantages of ICO for an entrepreneur is that a startup can raise more funds in lesser period of time. Also, if there is a brand name involved such as Telegram then raising funds is not an issue. They raised more than their hard cap set amount.
Point is, the idea of the ICO is what investor pays attention to. Also, the team, traction and the product market fit. However, idea is what a startup is based on but what makes ICO ideal is the quick results.