Pre-ICO: What Is It and Why Do It?
ICO (initial coin offering) has recently become a quite popular and promising direction. This segment of the cryptocurrency market is developing at a tremendous speed. In this article we will talk about the most risky, but at the same time, the most profitable stage of investment in crypto startups- pre-ICO. Contents: (please, click the topic to scroll down to it)
- What is pre-ICO and why do it?
- Airdrop and bounty campaigns
- The main risks for investors and startups
- How to select projects correctly at the pre-ICO stage?
- Where can I find up-to-date information on current pre-ICOs?
- MVP (minimum viable product) is a prototype of a future project that lacks much of the functionality. In this version, the product has only the most important features, without which there is no point in further development. MVP is designed to visually show the project idea to a wide audience.
- Budget for advertising campaigns. This part of expenses is one of the most pricey ones.
- Support of well-known experts in the industry. To do this, you need a budget for flights, meetings and conferences.
What is it?
- Airdrop means free distribution of tokens to all interested users who will spread information about the project in various ways (post in social networks, forums, comments, likes, etc.).
- Bounty is also a distribution of coins for the work done, but unlike airdrop, assignments are much more difficult (writing articles, logo/site/app design, WP translation into different languages ), and rewards for these tasks are obviously higher.
- Jurisdiction. As a rule (but not always), serious projects are chosen by those countries for registration, where mechanisms for regulating cryptocurrency are developed, and not vice versa.
- Team. Despite the constant growth of the crypto community, there are not so many serious and active market participants. It is necessary to analyze the team members according to their former successes or failures. Investing in those projects which involve absolutely unknown people needs to be done with great caution.
- Whitepaper. The main document of the project, which should be studied properly, describes in detail the terms of purchase, freezing, withdrawal, issue of tokens, etc.