Published
5 years ago on
October 01, 2018
“By fully subscribing to an entire issue of an ICO, the Bitcoin whales can create a positive narrative of success behind the startup raising funds. Whatever legitimate market demand there was for the ICO is side lined and left unsatisfied. If the startup issues further offerings later, then the value of these tokens is likely to increase.”Moreover:
“In essence, the Bitcoin whales can ‘lock in’ a floor value for their Bitcoins via this ICO proxy for a few months as long as the ICO is legitimate enough for a relatively liquid secondary market to exist in the short- to medium-term. At that time they can (hopefully) offload all or some of their ICO exposure based on the underlying market demand and move onto the next hot ICO (until they can cash out their Bitcoin exposure into fiat currency).”An ICO can’t be used to make Bitcoin better, however as we have expressed, many ICOs can help investors get more from their Bitcoin. Remember though, ICO investment is incredibly risky, so, whilst solutions may look clear cut and easy to reach through investing in an ICO, risk is high and the chance of a loss is great. If you do want to buy into an ICO, do your research first, check the companies whitepaper and run checks on the team behind it. Only invest what you can afford to lose.References City AM Investment Disclaimer