The Oxford Club is a financial publishing company. The club provides its 80,000 members with guidance to prosper and remain prosperous in the global market. The Oxford Club is a subsidiary of “Agora” a publisher of books and newsletters covering investments.
Members have access to research services and investment counseling. The Oxford Club educates its members through monthly newsletters like “Investment U”. In a recent edition of “Investment U”, Adam Sharp spoke about Initial Coin Offerings (ICOs).
Sharp described investors in cryptocurrencies like BitCoin as searching for unique investment opportunities. There are currently thousands of cryptocurrencies available. This proliferation is the result of the code that created BitCoin being accessible to anyone.
A successful cryptocurrency investor himself, Adam Sharp credited the success of BitCoin to four factors. These factors are liquidity, a strong support community, the ability to convert BitCoins to cash, and BitCoin employing world-class developers.
For potential investors, Sharp offered the following explanation of an ICO. He likened it to the Initial Public Offering (IPO) of stock. There are fundamental differences between the two offerings.
The are no minimal wealth requirements or investor accreditation required to take part in an ICO. When considering an IPO you explore factors like sales and earnings. Considering an ICO is an entirely different procedure.
The launch of a new cryptocurrency may start with a pre-sale open to individuals who had been tracking the currency’s development. The presale might also be open to the developer’s friends and family. Presale investors usually buy in at a significant discount because of the risk involved.
If the presale phase of the ICO proves successful, the ICO will then be open to everyone. Sharp explained that ICOs are usually not conducted via an exchange but through the website of the currency developer. Existing cryptocurrency like Ethereum can be used to invest in a new cryptocurrency.
Sharp offered a cautionary tale for ICO investors. Recently, a developer announced that they would be keeping, in cash, 8% of the ICO sales. Sharp described this as a “red flag”. The developers should have collected that 8% overtime not upfront.
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