FEW TIPS TO REMEMBER WHEN INVESTING IN AN ICO OR DAICO
Cryptocurrencies aren’t going away in the foreseeable future, in fact, we are all going to witness this technological breakthrough create wonders for the world.
In the midst of the #cryptocurrency gold rush, #ICO ( Initial Coin Offerings ) has become one of the most prevalent ways for start-ups to raise funds. It is extremely easy and efficient, as long as the team or the individual handling the #project possess the technical prowess to create and manage the tokens. Currently, there are no clear restrictions that can deny the opportunity of these people to crowdsource a blockchain venture.
But of course, where the money goes, the con artists goes, opportunistic scammers wouldn’t relinquish their chances of making some fast cash on the average person that are new to the crypto scene and was just trying to make their first investment. There are many red flags in an ICO that can be easily spotted, especially those that make unrealistic promises are best to be avoided.
So, here are a few tips for you to remember when choosing an ICO with potential to invest in…
Tip 1: Study The Team
No matter the people behind the project is a company, partnership or even a group of individuals, these are the people that will act as the cornerstone for the project to truly succeed. So, what quality should you look for in a team?
Publicly Disclosing The Team’s Identity- It isn’t a requirement to publicly disclose the team members’ identity, but it sure does boost the confidence of the investors when they know the team are actually qualified and capable of handling the project.
Actual Involvement Of The Team- Some teams might have highly skilled people listed as #advisers for the project, but in reality they don’t actually participate in the development. So, it is important to know whether the team members are fully dedicated the project.
Tip 2: Clear Idea And Detailed Explanation
Use cases provided by the teams needs be a solution to a real and occurring problem instead of a solution in search of a problem. Teams should present their ideas in a short but precise manner and have detailed explanation of the particular project and use cases .
Tip 3: Project Plans Realistic Roadmap
Usually when a project promises so much that it sounds too good to be true, you’re right, it isn’t. Two major reasons would be either it’s an ICO scam or the project team lacks the ability to set realistic milestones for themselves.
You should look for projects with goals that are actually achievable within the allocated time.
What is DAICO?
And so the question arises, what is DAICO? To simplify it, it is an ICO that incorporated some of the DAO features. But, which features does it inherit from DAO?
First, trust is not completely placed on a centralised team. Decision on funds are decided by a democratic voting system.
Second, funding is not released entirely at one go, but a mechanism has been implemented to release it over time.
Finally, there is a way to refund the contributed money. The contributors can vote for a refund of the remaining finances if the team fails to accomplish the project.
Benefits Of DAICO
Contributors have more influence in the development stage of the project. If they do not agree with the direction of the the project is going, they can set the contract to withdraw and get a refund.
It completely erases the risk of scam ICO where project developers organise a token sale and then disappear with the money as soon as the ICO ended, without delivering any real product.
The amount of funds that gets released from the Smart Contract is strictly controlled, so that it will reduce the risk of a 51% attack. Even if a 51% attack does occur, where an attacker wants to transfer funds to a selected third-party, the consequences will be contained to the amount that was authorised to be released by the contributors or the project team.
With a regular ICO, once a team successfully raises tens of millions of dollars, it suffers a diminishing in its motivation to accomplish the project; or, at least, the activity level declines significantly. Now with DAICO model in place, the team’s motivation to bring the idea to life, i.e. to deliver the product, is sustained over a lifetime period.
THE FOUNDATION OF GAMO PROTOCOL
This is why GAMO Protocol was created. It is to assist individuals or companies who wants to launch their DAICOs through our platform. It will make everything from planning to execution a lot more easier and faster.
Our core beliefs is that we want to solve the common problems people face when launching their DAICOs. GAMO Protocol has four components that ensures that we are able to tackle the common problems that comes with #DAICO
GAMO Framework
GAMOTech
GAMOWallet
Testnet
To those who are interested with our platform, click on the link below to learn more about GAMO Protocol. Also, follow our social media channels to get updates with our progress
http://bit.ly/WhatIsGAMOProtocol
Twitter: https://twitter.com/GamoProtocol
Instagram: https://www.instagram.com/gamoprotocol/
Medium: https://medium.com/gamoprotocol
LinkedIn Page: https://www.linkedin.com/company/gamo-protocol
Youtube Channel: https://www.youtube.com/channel/UCgj_vvDHYguPNrZ0ayuU-ZQ?view_as=subscriber
