‹

Initial Coin Offering

40
Bumper logo

Bumper Bites

Coin Offering

Remember how an Initial Public Offering (IPO) is a company's way of becoming publicly traded? An Initial Coin Offering (ICO) is the Cryptocurrency version of an IPO. However, unlike the IPO, where restrictions are well defined, and only certain companies can file for it, there are very few regulations of ICOs. In the US currently, anyone that has access to the right technology is free to launch a new cryptocurrency. So is it safe to invest in this market? Can you launch your own crypto? That's what we're here to find out. 

‍

Like an IPO, an ICO is a way of raising funds. Companies and individuals can launch an ICO for a particular project, usually crypto-related, and investors can buy the new coin if they support it and think it will increase in value. The coins issued can represent ownership or just have some kind of utility within the project. 

‍

An important document to understand in an ICO offering is its whitepaper, which details what the project is about, how much money it needs, how it will spend the money etc. However, just because the project is promising doesn't mean it will always turn out well. 

‍

The lack of regulation means that scams are rampant and easy to set up. Although some ICOs are legitimate and have generated massive returns, countless others have turned out to be fraudulent or have performed extremely poorly. 

‍

A common tactic for scammers is doing whatever it takes to make you believe in their project, sometimes taking months to develop a good reputation, only to abandon the project and run away with investors' funds. If you're really set on buying into a new ICO, make sure that you familiarize yourself with the cryptocurrency space, understand the project and its goals, trust the people behind it, review the legal terms, and acknowledge that it may end up being worthless.

‍

What if you want to launch your own ICO? Even if anyone can establish and launch an ICO, that doesn't mean that you should. The first thing that you need to realize is that the ICO climate has changed. Many countries are starting to ban and regulate the space. Investors are becoming more informed, and its popularity has likely peaked. Upwards of 90% of ICOs fail to reach their goals, and it has become increasingly difficult to set up. Unless your project or business would substantially benefit from an ICO, it probably won't be worth it.

‍

Source: Investopedia| ICO

Previous Div

Next Div

Disclosure: This article is solely for informational purposes only. Bumper does not recommend any specific investments or investment strategies. Investments in securities involve the risk of losses and past performance does not guarantee future results. Before investing you should carefully consider your investment objectives, time horizon, and overall risk tolerance as well as the information stated in the product offering prospectuses.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.
Disclosure: Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security's eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on principal or riskless principal basis, and can only be bought or sold with market orders during market orders.

Investing 101

1

Risks and Rewards of Investing

2

How to Begin Investing as a Teen - Step by Step

3

Stocks and Shares

4

ETFs

5

Stock Market

6

Stock Exchanges

7

IPO

8

Long & Short

9

Realized & Unrealized Gains

10

Capital Gains

11

Taxes on Investments

12

Diversification

13

Market Cap

14

Dividends

15

Fractional Shares

16

Stock Indexes

17

Index Funds

18

Fundamental Analysis

20

Ratio Analysis

20

Key Statistics in Bumper

21

Benchmark Analysis

22

Technical Analysis

23

How to Pick a Stock

24

Dollar-Cost Averaging

25

Value Investing as a Teen

26

Growth Investing as a Teen

27

Momentum Investing

28

What is Cryptocurrency?

30

History of Cryptocurrency

31

Meme Stocks

31

NFTs

32

Blockchain

32

Initial Coin Offering

40

Compound Interest

41

Equip Solutions, Inc. ("Bumper") and Alpaca Securities LLC ("Alpaca") are not affiliated and neither are responsible for the liabilities of the other.

Technology is offered by Equip Solutions, Inc.

Brokerage services are provided by Alpaca Securities LLC ("Alpaca”), member FINRA, a wholly-owned subsidiary of AlpacaDB, Inc. Clearing services are provided by Velox Clearing LLC (Velox) and Vision Financial Markets LLC (Vision). All three are members of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash) per customer. Explanatory brochure available upon request or at www.sipc.org.

This is not an offer, solicitation of an offer, or advice to buy or sell securities, or open a brokerage account in any jurisdiction where Alpaca is not registered (Alpaca is registered only in the United States).

View Alpaca's disclosures at: https://alpaca.markets/disclosures

Alpaca does not make recommendations with regard to fractional share trading, whether to use fractional shares at all, or whether to invest in any specific security. A security’s eligibility on the list of fractional shares available for trading is not an endorsement of any of the securities, nor is it intended to convey that such stocks have low risk. Fractional share transactions are executed either on a principal or riskless principal basis, and can only be bought or sold with market orders during normal market hours.
‍
The content on this website is for illustrative and informational purposes only and any historical returns, expected returns or projections are hypothetical in nature. Investing involves risk & investments may lose value, including the loss of principal. Past performance does not guarantee future returns or results. Before investing, carefully consider your investment objectives, time horizon, and overall risk tolerance as well as the information stated in the product offering prospectuses.