Reasons Why an Honest ICO Rating is Crucial in Fintech

Sep 13, 2018 at 08:27 // News
Author
Guest Author
Here are the reasons why an honest ICO Rating is important in the Fintech industry.

An Initial Coin Offering or ICO is important in the development of new technologies. Here are the reasons why an honest ICO Rating is important in the Fintech industry.

The financial landscape has been molded to accommodate digital currency. Many companies develop their own technologies using an ICO. An ICO is also known as an Initial Coin Offering, and it is the cryptocurrency equivalent of an Initial Public Offering or IPO. In recent years, ICOs have been used to gain support for the development of new blockchain-based innovations and technologies. 

There are new ICOs available every month, but sometimes a few of these ICOs don’t deliver the promises they give to their clients. Most investors will really take the time to dig deep and look into the ICO’s background, but sometimes they don’t know what to look for or they wouldn’t understand why certain considerations are important, which is why they turn to ICO rating websites for facts. 

Depending on Rating Websites

The best thing about the Internet is that information is readily available especially when you know where to look for it. More people turn to reliable niche websites or those that specialize in a certain kind of data or topic in order to find out more about the things they want to learn about. Almost everything can be found online nowadays. 

In financial technology, information is the key to making informed investment decisions and reliable rating sites are the front line to making sure that there is fair trade. However, not all websites are diligent in making sure that every high-rating ICO is legitimate and transparent. It becomes more alarming when the known scams are being promoted and rated highly.

Importance of Honest ICO Ratings

The release of new technologies has also paved the way for advanced methods of doing various transactions like purchasing, selling, and investing. In the financial technology industry, honest rating websites for ICOs are important for the following reasons: 

1. Preventing scam ICOs from flourishing 

The main important of an honest ICO rating website is that it helps put scammers in check. When reliable websites put out an alert that a certain organization, company, or ICO is fraudulent, it helps in stopping further funding. People would stop investing in them and there would be no point for them to continue. 

Aside from that, when scammers can see that there are people who make an effort to put a stop to fraudulent activities, they will think twice about creating bogus ICOs. Blacklisting CEOs and members of scam ICOs also helps in filtering the legitimate companies from the illegitimate ones. Even if one doesn’t have the know-how, he or she still deserves to be protected from fraudulent ICOs. 

2. Helping investors make informed decisions 

One of the key reasons that these rating websites were created was to collate reliable information for the investing public. A person who doesn’t know much about ICOs or cryptocurrencies may rely on rating websites to tell them that they will be making a good decision in their trade. It’s important that the rating website is honest and reliable in order to promote genuine trade. 

The best thing about living in the 21st century is that there are a lot of sites where you can gather information that you need. Data is easily accessible with just a few taps or swipes. 

3. Ranking ICOs according to important standards set 

Commodities, products, services, and venues are often rated according to their offerings or how they fare against their competition; ratings for ICO are no different. There are often standards on how they are being rated and sometimes they are based on the track record of the team, or based on the whitepaper and the strength of the technology they are trying to innovate. 

There are experts who rate ICOs according to certain criteria, and their input greatly helps those who are looking to expand their investment portfolio. The more knowledge about Fintech is being shared, the more that the industry will grow. 

Financial Technology and ICOs Being Rated

Having proper and honest ICO rating websites is important because most investors don’t have the time to investigate every single one of the initial coin offerings available in the market. Dignified cryptocurrency experts should always make sure that investors are protected and safe in their support for new technology. 

Since Fintech is a new industry, skeptics will always try to highlight the bad and gloss over the good. Having honest ratings for ICOs will also promote the reliability of Fintech as an industry, because it shows that the professionals and experts in financial technology are serious about moving forward in promoting fair and secure trade. 

Author Bio: On Yavin is the founder and CEO at Cointelligence, the data layer for the crypto economy. He has extensive experience as a serial entrepreneur and an angel investor, as well as more than 20 years of experience in the tech industry.  On uses his deep hands-on experience and knowledge of online marketing to create winning strategies for ICOs, crypto, and blockchain companies. Having earned the reputation of a crypto expert, On continues to contribute to this industry in ways that advance cryptocurrencies and blockchain technologies. On has a law degree (LLB) and is also a certified Advocate by the Israeli Bar Association. 

Disclaimer. This article is paid and provided by a third-party source and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds in any company. CoinIdol shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services mentioned in this article.