Be Wary of Initial Coin Offerings with Large Bonus Offers

February 18, 2018 by Adrian Thorpe

You are going to see advertisements for Initial Coin Offerings all over the place, much more so when you are surfing the web, however as is always the case with any form or type of investment you need to fully understand what the ICO is based around before you part with any money!

I have started to see more and more ICO’s launching that are offering early investors in them some huge valued bonus offers, which will see anyone investing early getting an additional supply of tokens or coins on top of those they have purchased.

Many Initial Coin Offerings may also have a sliding scale of bonus coins and tokens on offer, which all tend to offer a lower percentage of additional coins and tokens depending on the date an investment is made.

The value of the bonus offered can obviously differ from ICO to ICO, and it is very true to say that he sooner you invest the most coins and tokens you will then be given access too, however I would urge caution with any ICO that is making available huge amounts of bonus coins and tokens, as they may be a scam!

There is a lot of information that you need to familiarize yourself with and research in regards to an Initial Coin Offering you may be interested in investing in and as such below I will let you know the every aspect of them you should be actively researching to keep the risks associated with your investment funds to an absolute minimum.

What Idea Or Company is backing an ICO?

The one defining factor that is going to make an ICO a successful one is just what the idea is behind the tokens or coins that are going to be issued, and whether people are going to want to actually use them for their intended purpose.

It is all good and well launching an ICO, but the only way investors are going to be interested in investing in it is if they see potential to make a profit on their invested funds!

As such take a look at just what the coins or tokens are going to be used for, and the market or business sector it is aimed at, and then see just how big a market of business place it is.

The people behind the ICO is also going to make a lot of difference too, if those people are named and listed on any ICO website, then do your research on them and see just how much experience they all collectively have and which other businesses and companies or even organisations they have been working for or associated with.

If the idea that is behind the launch of any Initial Coin Offering is a solid one and one that people are going to embrace, then there is a much greater chance of that ICO being a successful one and people will be prepared to invest in it.

Long Term Appeal of Initial Coin Offerings

It is very true to say that many investors can very quickly get an appetite for investing in Initial Coin Offerings and Token Generation Events, for when they do start to see their investments grow they may be tempted to continue to invest in many new start ups.

It can actually be quite additive investing in cryptocurrencies, but do keep in mind it can be compared to gambling, for you are going to be taking risks of course for not all ICO and token generation events are going to prove popular and many of them may fall by the wayside, taking your invested funds with them as they do so.

However, as long as you keep a sane and level head and do not invest too heavily in any one single coin or token, there is always going to be the chance you will see some fruits on those investments, and with the initial price of coins and the bonuses available there is some value waiting to be mopped up too.

I have noticed that quite a number of websites will have lists of all up and coming and current ICO’s but keep in mind that some of those websites may be either connected to the ICO or may simply be being paid to promote or review each of those listed, so they may not be offering biased information on each of them, so be aware of that fact!