The Best ICO to Invest In
As you search for the best ICO to invest in, you may find it useful to take a step back and figure out what your cryptocurrency token/coin investment goals are, and then reassess whether you actually want the best ICO to invest in — or whether you want to invest in the bestPreICO. PreICO (Pre-Initial Coin Offerings) may have greater risk, but they may also have better rewards than at an Initial Coin Offering-to-token/coin generation event.
(For that matter, not all coins and tokens are created equally and not all offers are created equally.)
Check out Sun Fund’s offer: www.StartEngine.com/sun-fund-dc
We would like to share our experience to help you determine the best ICO to invest in (no matter what offers you may be looking at).
Let’s talk about…
- Investor Safety
- Registration with Financial Authorities
- Best ICO to Invest In: Offering Terms
- SAFT & SAFE
- Asset-Backed vs Non-Asset Backed
- ICO vs PreICO
- Best ICO to Invest In
Investor Safety
There are several things to look for as you consider how much risk you’re willing to take on a PreICO. In our opinion, here are a few useful things to look for:
Is the company offering the PreICO based in the same country you are part of? You should know your rights and know how you can hold the company accountable according to rules in both your and their country. International investment is a complex field. Know what you’re getting yourself into.
Registration with Financial Authorities
Also: Is the offer registered with the financial authorities of your country? There is a long list of financial regulatory authorities by country at Wikipedia. If the company is located in the USA, for example, you’d want to know whether a) the offer is registered with the Securities and Exchange Commission, or via a platform that is registered with the SEC and a member of FINRA. (Check out Sun Fund’s offer here.) Not all global regulatory agencies, however, consider tokens to be securities: It is up to the individual to explore any PreICO or ICO offering to see whether it’s registered with the authorities and read up on the cryptocurrency environment (which is changing constantly, and generally in the direction of greater regulation.)
You should know the SEC says it considers most tokens (or coins) as a security (regardless of what the offerer themselves may say about their token or coin) with occasional exception.Registration with a financial authority itself doesn’t mean it’s the best ICO to invest in for you, but it does provide some amount of accountability for offerers.
Best ICO to Invest In: Offering Terms
How is this offer being conducted? What are the terms, ie. how many tokens are being offered, how they will use the money, how many tokens are being kept in reserve for the team? What price is each token?
The platform itself may provide a full copy of the offering document that is registered with the financial authorities, and b) the platform may be a part of a non-governmental organization or a governmental organization that helps protect investors.
In the USA, the SEC is a governmental organization concerned with investor safety. FINRA is another. Here is a list of FINRA member portals in the United States, for example:http://www.finra.org/about/funding-portals-we-regulate.
Better SAFE & SAFT Than Sorry?
If the company is in PreICO presumably might not have a built-out token or coin with an accompanying ecosystem for it to operate in (wallets, markets, exchanges, etc.) there can be some kind of contract that basically holds the space for the coins or tokens until the token generation event occurs. These documents may be referred to as SAFTs (Simple Agreements for Future Tokens), or SAFEs (Simple Agreement for Future Equity) depending on the nature of the token, or they may offer no type of contract.
The SEC considers the SAFT to be its own security that holds space for you until the coin or token is developed. There are tons of articles about SAFTs and SAFEs out there. It’s basically a newer contribution to the cryptocurrency field that at least affords both the issuer and recipient some kind of financial relationship if/while/until the tokens are generated. It isn’t necessarily an indicator of the best ICO to invest in but it does provide a bridge security & connection to the issuer while the token is being developed. Once the token is developed, the SAFT or SAFE is exchanged for securities in the form of the coin or token you were buying.
Asset-Backed Cryptocurrencies
Is the best ICO to invest in one that is asset-backed? Asset-backed cryptocurrencies are kind of in a class by themselves among the field of cryptocurrencies and their various promises to perform different blockchain and smart contact functions. They may offer slower growth and possibly less volatility relative to non-asset-backed cryptocurrencies which are not tied to the performance of an underlying asset. On the other hand, some say there is downside protection from market volatility if the underlying assets are performing.
ICO vs PreICO
Is the best ICO to invest in an ICO or PreICO? Most people at this stage of the overall cryptocurrency story look for everything from free cryptocurrency to deep discounts, but the market and investors are maturing as we speak. While high-pressure sales tactics and over-promised returns may be warning signs of bad offers, offerers should consider the greater risk taken by investors and offer relatively better deals to investors for having assumed that risk while they get their shop up and running.
Best ICO to Invest In
Ultimately, let your enthusiasm for an offer be not the end-point of trust, but the beginning of an investment research excursion that leads you to evaluate that offerers claims possible, and also see how much work they’ve done for you to mitigate *your* risks.
Please do not take this as investment advice. Seek any investment advice from a qualified financial professional.