The Qualities of a Good Crypto IPO

You probably already know that an initial public offering (IPO) is when a company goes public for the first time and raises money by selling their shares. Well, what about an initial coin offering (ICO)?

This is when companies or individuals raise funds by selling virtual coins. Buying virtual coins from complete strangers may seem a bit strange a first. And granted, some of the ideas behind ICOs are a bit ‘out there’.

For example, one ICO was trying to raise money to build a platform where you could pay for office lunch runs.

However, just like IPOs, some ICOs are attached to amazing ideas that could potentially be worth hundreds of millions, and maybe billions, of dollars.

As reported by CoinDesk:

The operators of a regulated, Jersey-based bitcoin fund have officially closed a new $5 million fund aimed at investing in cryptocurrency tokens and initial coin offerings (ICOs).

Backed by fund manager and former JP Morgan trader Daniel Masters, the offering by Global Advisors is the latest in a string of funds aimed at offering accredited investors exposure to the burgeoning crypto asset class. However, it may be unique in that those who committed investment funds did so in ether, the native cryptocurrency on the ethereum blockchain.

Daniel Masters, the chairman of the fund, said recent ransomware attacks are driving demand for cryptocurrency payments at the moment. ‘Bitcoin was underperforming but was being pulled higher as the whole cryptocurrency complex exploded upward,’ Masters said.

So what is it that makes a great ICO?

According to Masters, there are three things: a tech savvy team of founders, a real-world problem to solve, and a strong network affect.

Find an ICO that has all three, and you could be on to a winner.

Happy punting.

Härje Ronngard,

Junior Analyst, Money Morning

PS: Find out why Ethereum could be the ‘one coin to rule them all by clicking here


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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