What is Blockchain ICO? Why do you invest in ICOs?



Blockchain ICO is a kind of funding that primarily takes advantage of crypto-currencies. The procedure is carried out through crowd-funding despite the popularity of private ICO (Initial Coin Offerings). These types of crypto-currency are supplied in the form of tokens to the prospective investors and replace it for procuring various other cryptocurrencies like Ethereum and bitcoins. Nowadays, bitcoin scams become a common issue, so, it’s better to take all necessary precautions before investing in it.

Features of Blockchain ICO


Block Chain ICO is a fund-raising mechanism wherein investors are willing to take part in Initial Coin Offerings to grab the least expensive tokens. However, there is absolutely no guarantee with regard to a token being valued way beyond the price of Initial Coin Offering as soon as it is available for standard trading. The majority of the crypto-currencies were traded below the price of ICO when it is readily available for exchanges.

What is the purpose of investing in ICO?

According to Bitcoin analytics, generating maximum revenue and a chance to take part in demanding projects are some of the major factors behind investing in Initial Coin Offering (ICO). In ICO, the conventional method of augmenting capital implies that investors obtain shares from a corporate entity along with voting rights and dividends.

ICO which is sometimes referred to as 'Crowdsale' involves procuring tokens that guarantee multiple benefits. These investors forecast an increase in the value of tokens that contributes towards the success of a project.

Some of the other reasons to invest in an ICO are as follows:

  • Apart from an increase in token value, they often provide numerous rights to the holders such as payment rights, access rights, contribution rights, and fee rights. A payment right implies that token is a source of payment for a specific service. 
  • Access rights, as the name indicate, would require a token to access a particular portal.
  • Fee rights mean that the token holders would receive a marginal profit
  • A contribution right is a type of right wherein token holders are assigned a role to maintain a network that does not contain the development of blocks.

In addition to the above-mentioned, there are two more rights such as block creation and governance rights. Block creation right involves determining who is responsible for securing a blockchain project. The governance rights consist of guiding various types of product features, protocols, and directions.
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