Why do you think ICO can make money?

More than $12 million in financing in 12 minutes. The news that Silicon Valley technology startup Gnosis recently raised about $12.5 million has caught the attention of industry practitioners. Moreover, the tokens were raised through auctions. Domestically, asset chain projects based on the concept of asset digitization are also among the ICOs, and the scale of ICO funds is also at the forefront of many global projects.

This new way of raising funds derived from the digital currency industry is popular among many people. For enterprises, it avoids core issues such as law and equity. For investors, they hope to make profits through ICO. So can investors make money?

It is certain that you can make money, because this method has been tried and verified by many people, and the final conclusion has been drawn. However, for speculative behavior that is even more risky than investing in Bitcoin, making money through ICO is a false proposition.

Why do you make money?

At first, almost all participants chose ICO for short-term speculation and profit . Of course, there are also a group of investors who have full trust in ICO projects and share the same values. The premise is that ICO projects are definitely not just a few pieces of code and a few lines of agreement that can impress those long-term investors. Some development teams even doubt their own projects, and eventually they become a means of making money. For investors, such projects should be ruthlessly despised.

Investors invest money in ICO projects, and the main profit model is to make profits through the increase in the price of issued tokens. This is equivalent to the first opportunity in the primary market of stocks. Facts have proved that the price of tokens can indeed rise, mainly due to:

1. The project operation team needs to give investors an explanation.

2. It takes time from ICO to token launch. Investors who have been holding back for a long time hope for a rise in prices, and the buying market is larger than the selling market.

3. There will be an increase in the short term, attracting more secondary market investors.

Therefore, for most ICO projects, even if they are fake concept funds, as long as investors run fast, they can make money. Of course, if you are too greedy, you will eventually be treated as leeks. Here we are talking about blockchain ICO projects that will not last long. It is also possible that the ICO project officials will run away directly after getting the funds.

Investors who have this idea are often participants in the digital currency industry. They are the first batch of users. For more investors outside the circle, they do not want something unregulated, but rather regulated and trustworthy investment products. Obviously, the risk of the ICO model is very high.

From the development history of digital currency, ICO projects with innovative ideas and reliable teams have achieved great development. Foreign Ethereum, TheDAO, Lisk, etc.; domestic Metaverse, Antminer, etc., from the token price alone, are enough to benefit investors, and the development team continues to develop project applications, and investors' confidence continues to increase, so they are optimistic in the long run.

In addition, the domestic blockchain project Acchain, which recently conducted ICO, has also made the first blockchain application based on the main chain, and it is the first blockchain application combined with real estate. Investors are optimistic about the long-term development of Acchain, and they like teams that like to "make things happen." Supporters of Acchain said that the team is constantly making applications and publicity, so the price of the currency will rise anyway, and reliable projects will definitely make money.