5 Misconceptions about ICO
The ICO market is relatively young, therefore, trying to understand it, investors create persistent errors, which often lead to erroneous actions. We represent the top five most persistent misconceptions about ICO-projects.
1 ICO project guarantees 100% fundraising
According to the Tokendata data on the initial placement of coins for 2017, released in February 2018, 46% of the ICO ended in failure. These figures show how important it is to think out a strategy for creating and selling a product and carefully choosing a team. Since a large number of ICO allows investors to choose the most thoughtful and implemented projects.
2 ICO is the fastest way to raise funds
In fact, it will take from 6 to 12 months to create an interesting White Paper that conveys knowledge of the market, product and team capabilities. It takes only three months to form the core of the community and the information field to attract investors.
3 Tokens are similar to coins
This is not entirely true. Crypto coins are used for only one task and have one degree of value. The token is able to perform a number of functions, and it can be evaluated at many levels.
4 All project advisors are experts
Not in all cases. A number of consultants are really ready to work in a team before the token placement stage, many choose more distant cooperation. When choosing an advisor for a project, one should give preference to a specialist with experience in the field of your product, who can bring the project to market entry.
5 All listing resources are of the same type
In fact, listing sites operate with various algorithms. Attention should be paid to resources, where information on projects is presented in more detail. After reading the analytics, you should be clear what the experts were guided by when posting certain information about the project on the site.