Morning everybody,
I would like to participate in a ICO since it seems pretty profitable but I'm not sure if i got that right.
Is it right that an ICO is a cheap sale of Tokens. The goal is that these Tokens increase in value. Right?
But what exactly is the difference between coins and tokens. Are tokens just a project-specific coin. Do I have to treat them in any ohter way or is it just anoter name for the same thing?
Cheers
TOKEN - mainly used for "coins" that are build on top of another blockchain such as Ethereum or Waves as example, popular platform is Ethereum with ERC20 tokens
COIN - an different coin with its own blockchain.
GOAL : Is to raise money for people/company/startup to make their idea a reality and since they want to "help investors" they are trying to make sure that their tokens raise in value to benefit the investors.
Tokens are easier to create thats why many people are creating those. Tokens/coins from ICOs can raise up in value and that is why most people are buying in they are hoping price will raise but this IS NOT GUARANTEE that they will raise. You will have to chose project that have good idea and good memebrs who will implement that idea, personally I don't like to invest in ICOs , because you may find yourself investing in one that might fail or that is just pure scam. I am not saying don't invest, if you understand and know what you are doing its great you can flip money and earn huge in terms of % raise.
That being said many ICOs are tokens that are build on Ethereum network and are developing some smart contracts on there, but this doesn't needs to be the case.