Why ICO Supervision is ADN’s Top Priority
ICO supervision is a must when investors aim to ensure their funds are safe. ADN presents an explanation of why this is so important to us.
As previously discussed in one of our ADN blogs, an initial coin offering (ICO) is a method for enterprises to obtain funds for its development. ICOs are, generally, used by start-ups on the cryptocurrency world. It issues new tokens within the blockchain and, most of the time motivates some concern on the investors’ side.
By the numbers, ICOs have shown that they need further security. According to Fundera, ICOs raised a total of nearly $11.4 billion in 2018. The ICO companies born last year were more than 3,700 and the completed ones (1,253) raised exactly $7,812,150,041. However, nearly half of the new companies (46%) failed to deliver and about $400 million in ICO funds were stolen from the investors’ pockets.
Nevertheless, it is impossible to deny the dilemma: ICO companies experience huge risks. However, they also can be in the most strategic position to reap the highest profits. If early investors in a cryptocurrency have the highest potential to see huge profits, then in parallel, they have the highest risk of seeing the platform they invested in to failing and, consequently, losing their money.
In this blog, we explain about how ICO investors can keep their funds safe We will also explain why ICO supervision is a must.
Transparency is Top Priority
One of the principal weaknesses of ICO projects is their lack of transparency. Any crypto project can get away with the investors’ money if too many of their investors do not do their own research. That is why it is important to do a background check on the company. Investors should, however, dig further than the company’s website. They should also visit the founders and check their history. Are they capable enough to execute their project? What projects did they have prior to the current one? Where is the team located? There are others whose ICOs will fail if only all of their supposed investors would make time to doing their research.
ADN can also assist in supervising ICOs. We are a blockchain-based initial coin offering (ICO) ecosystem that intends to protect the interest of investors who will be participating in the said crowdfunding. For every company or startup to assemble funds within our platform, they will have to program a smart contract on our blockchain to do so. Additionally, our project will be claiming them to submit the necessary information before we provide them a green light.
In order to guarantee transparency and security, we will review the ICO’s company framework and verify each stage of the ICO purpose. In this way, we will be able to ensure the reliability of the offered information and guarantee investors’ safety.
Avoid Common Mistakes
Even though ICOs are too tempting to avoid, there are some details that you should pay attention to in order to avoid common mistakes.
Before investing in a new cryptocurrency, you should check the company’s legal structure. Technical documentation and its sources, ICO use cases, project social media, and token sale information for the specific ICO are also important aspects. Additionally, you might look for companies registered on ICO platforms focused on providing security and transparency, such as ADN does.
As shown by the ICO statistic from Ernst and Young, $400 million, or 11%, of ICO funds were stolen only during the past year. Our main network can be an answer to avoid fraud and other similar misdeeds. After all, we are a blockchain-based platform designed to secure initial coin offering investments. We work hard to check all the above-mentioned stages in order to keep your security.
ADN For Secure ICOs
Despite the number of failed projects or the amount of stolen funds, the ICO market keeps growing and remains stronger compared to the past few years. ADN team is aware of this expansion and we keep developing innovations to ensure the creation of secure ICOs. As we understand investors’ apprehensions and doubts, we exist to provide methods and systems that enable them to securely invest in new cryptocurrencies.
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