Internet Capital Markets (ICMs) apply traditional investment principles using new technologies such as blockchain. In this article, we will explore how they work, what ICM tokens are, and their benefits and risks.
How Internet Capital Markets Work?
ICMs leverage blockchain to simplify the transfer of funds between creators and supporters. To launch a token, one merely needs to post a message on social media, after which an automated system takes care of creating the token and setting up a pricing mechanism.
What are ICM Tokens?
ICM tokens are digital tools that allow users to get involved in a project early on. Depending on their design, tokens may provide early access to features, voting rights in decision-making, or a share in future revenues. It is important to note that ICM tokens are not company stocks and do not provide legal ownership or equity.
Benefits and Risks of Internet Capital Markets
ICMs make participation accessible to investors without requiring special permissions, which broadens the pool of participants. Projects can raise funds at any time. However, the lack of oversight and regulation increases risks of scams and instability. Tokens may not be linked to real projects, and recovery of funds in case of failure can be extremely difficult.
Internet Capital Markets offer new opportunities for early-stage investing but carry significant risks. It is crucial to thoroughly verify a project's requirements on the platform and recognize that accessibility and simplicity come with drawbacks.
