The cryptocurrency world has been quite crazy over the course of the past year or so with many individuals getting in solely to make a quick profit. One of the best ways to do this has been through the use of initial coin offerings or ICOs. For those who don’t know, an ICO is when a company offers a coin for investors to purchase as opposed to a traditional stock in an IPO.
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The coin can then be held onto for the sake of investment or traded for another form of currency. Many have stated that the craze on ICOs might have reached the tipping point, but is that the case? According to a report on the subject “RippleNet did an initial coin offering (ICO) and sold their coin (XRP) at a discounted rate. It was worth less than half a penny. On January 4, at its peak, it was worth $3.65. Let’s say you put $10,000 to work in XRP when it launched its ICO; you would be the proud owner of roughly two million ripples. If you forgot you even had those coins, and surely never had any use for them on their Ripple Network, a service only for financial institutions, you’d be happy to discover that your two million ripple was worth $7.3 million at their peak last month.”
This type of story is something that is not uncharacteristic of the cryptocurrency industry. Many individuals have made quite some large fortunes, but the risk still remains incredibly high. Much of the market is subject to speculative news which can have a large impact on what happens with the price of a coin. The hopes are high that the market on crypto can begin to stabilize in the near future, allowing for the full potential of crypto to take over.