Question

1)Why are some companies opposed to raising money via an ICO “initial coin offering”?

2)what kind of investors do ICOs usually attract?

Answer 1

In simple terms, ICO is about selling of digital currency.An ICO can be a great method for raising capital of company. The good thing about ICO is that most government recognize them and accept easily.

1) It can be considered a high risk to invest in ICO. Some companies oppose to raise money via ICO because of multiple reasons:-

-The potential of positive returns is risky.

- Chances of scam projects.

- weak information security

- loss of trust on the company

- Difficult in starting the project without big investment

-Difficult in getting quick feedback.

-No convient infrastructure.

-Chances of loss of investors money.

-persuasion lf the project from influention people

-It may take years until the actual market for the project doesn't exist.

-There is no guarantee ln completion of the project.

- causing disruption in the market, threat to big venture.

However, irrespective of all the above points they are quite popular nowadays because of their easy accessibility.

2) When the value of crypto currency appreciate, the investors make profit out of it. The ICO usually attract

-potential investors

-small investors

-startups

- well established ventures

Example

ICO is attracting lot of US investors(current) because of positive returns with less investment.

Major business venture of silicon valley are investing on ICO.

The biggest plus point is that token may be brought to lower price.

ICO is not regulated by any barriers or rules.

Its open to all. No regulatory oversight.