Breakthroughs are constantly open to criticism. Whether it’s a technological marvel or a new government policy, each new idea is put to the test and judged by the masses, and the authorities.
No matter what the innovation is, it’s thoroughly investigated and analysed by any party that’s interested. Consequently, something as complex as cryptocurrency was bound to raise a few eyebrows, especially when its rules break free of bank control.
In the end, cryptocurrency is digital currency, and manifestations of this such as bitcoin aren’t without backlash, which is to be expected when fresh ideas appear on any scene. After all, how else can an idea evolve and improve? A similar thing can be said for ICO in landing negative attention, despite it offering innovative ways to pay for goods and services. In the end, it all amounts to ‘digital money’, and affects how it’s used to secure trade.
What is an ICO?
ICO stands for Initial Coin Offering, aiming to raise money through a series of campaigns. It’s crowdfunding cryptocurrencies, giving small startups a boost in financing their endeavours by unilaterally bypassing the banks. Certainly, it’s a time saver if nothing else. However, while some view it as a viable shortcut, other’s view it as cheating while flouting core business principles.
For example, the world of cinema has enjoyed the fruits of Kickstarter, funding films from the get go that save gargantuan amounts of time meeting with investors and pitching projects. In the end, ICO’s aren’t too dissimilar, but they focus on providing goods and services rather than snippets of entertainment. Consequently, their uses are more important than funding an independent passion project; but businesses, stock and livelihoods.
As is true with nearly every corner of the internet, the world wide web is frequently prone to scams. Whether it’s subtle misdirection’s or blatant falsehoods, some ICO’s encourage widescale investment from investors to then vanish forever, held unaccountable for their deceitful actions. Subsequently, investors will be constantly operating in murky moral and legal waters, so it’s important they adopt a strong moral code.
Nevertheless, some refer to ICO’s as being a ‘wild west’ world of trade, where for example, more company capital can be raised than is fair through new bitcoins. While business growth might seem tempting, without proper planning and nurturing, this kind of expansion and acceleration leads to a warped company. Partaking in certain ICO’s risks jeopardising any startup and can cripple them to a point of no return. Whether it’s assets, finances or reputations, the greed can make it all disappear at the click of a button.
Of course, while ICO’s can be dangerous and risky, it’s not all bad. There’s a great deal of opportunity too, and the internet is great for discovering new prospects and acquiring new assets. The ICO is no exception here, granting a power that can work wonders if it isn’t abused.
For ICO and cryptocurrency, there are nuggets of legitimacy and help online. Though they can be tough, ICO’s aren’t completely illegal, but some common sense and expert advice on ICO’s can set up the startup for a boost in their capital. After all, startups should strive to discover a perfect balance in all their activities; finding legitimate ways to benefit their business, but in a safe and legal manner.