To ICO or not to ICO

The initial coin offer or ICO as the process of crowdfunding in the promotion of new crypto start-up is known since July, 2013. The main idea of ICO is to raise funds collecting fiats or existing crypto (BTC or ETH, most frequently) in change to project tokens. The year of 2017 became the ‘Golden Age’ of ICO: some projects e.g. the Brave web-browser collected millions of USD in a couple of seconds. By the way, this period in the same time reveals all the vulnerabilities of this young and fragile market. As the analysts from Marketwatch say, more than half of 2017’s ICO failed with 100M USD raised. Up to the nowadays, the confidence in ICO is undermined critically: all social media giants such as Google and Facebook strictly prohibited the ICO advertising.

Where is the trick?

First of all, significant part of ICO programs are the scams from the outset. Phishing, Ponzi schemes, personal data frauds, thefts are common in this market. According to Cointelegraph, 10 per cent of ICOs are initially fraudulent. The idea of poorly regulated but really unlimited fundraising seems to be very attractive for the crooks of all stripes.

The second problem is the speculative nature of ICO. Mostly, people invest not in project but in the hype launched by the project. In spite of the value of the product connected with the token offered, people invest in them missing the rush of Bitcoin and Ethereum. Thus, a huge cash moves to the ‘something-about-blockchain-platforms’ and being lost every day. As a result, serious venture investors now are hesitant about the ICO proceedings.

We did it our way

Since the SWAP.Online is a revolutionary project, the obsolete or vulnerable technologies were never treated as an option for us. So, we decided to avoid the ICO procedure at all. The part of tokens available for the wide range of purchasers will be distributed only via Smart Bounty and Smart Airdrop programs. We bet on the product (decentralized exchange protocol and crypto acceptance solutions), not on the hype. Thus, the participants of the programs will be barely the exclusive token holders.

Take care of your funds, don’t miss a chance to become a part of SWAP.Online.