Buyer Beware! As Coins and Tokens Flood the Market, How Do Smart Investors Pick the Winners?

Initial Coin Releases (“ICOs”) have yielded investors billions while raising needed capital for talented tech entrepreneurs. Day traders and investors can make quick returns on little known coins, which can multiply in value before users’ very eyes.  These huge gains, however, do not come risk- free.  Far from it – the biggest losers in virtual currency markets can drop to half their value in a single day.

Minimizing risk and maximizing return is the keystone of any well-managed portfolio. The Stamps platform is designed to achieve the ultimate balance in risk and return on equity token investments. On the Stamps Platform, investors can get the confidence they need to commit large funds to a new virtual currency. However, how will the best virtual currency investors choose tokens on the platform to buy in to?

New Coins and Tokens Are Launched Every Day

Every day, tech entrepreneurs launch new virtual currencies through ICOs. These add up to thousands of new cryptocurrencies being created each year. Inevitably, many of them will be very similar and there are bound to be at least a few that are seriously flawed. With so many new coins available every day, investors can become overwhelmed trying to separate the winners from the losers.

Which Token Should I Buy?

Thorough research is the basis for any good investment.  Before buying a new coin or equity token, look into the company launching it. The team behind the project, the type of product or service they offer, and presentation and marketing of the company are all good indicators of whether it’s a good investment. Information on the actual coin offering or equity token release should be clear and easy-to-find, as transparency is critical in these types of investments.

Of course, the value of your investment will ultimately be tied to the success of the token-developers business, so make sure the company has laid the groundwork for a successful product launch. Look for a Minimum Viable Product, or “MVP,” in the company’s whitepaper or website, which is generally a prototype or beta version of the product it’s taking to market. Pay attention to social media to determine what sort of market demand the token has stirred up pre-sale. After all that, if you’re satisfied by your research, you can make your investment with confidence.

The Stamps Platform Increases Security and Transparency for Investors

Investors are always looking for ways to mitigate the risk associated with investing in cryptocurrencies.  The Stamps platform does just that by offering a way for businesses to issue tradable equity tokens as an alternative to the traditional ICO model. When a business issues equity tokens on the Stamps platform, it retains a portion of them and the rest are gifted to STAMP coin holders. Once market demand for the business’s equity tokens develops, some or all of the retained tokens can be liquidated to fund the business operations as needed. However, if no market demand emerges within a specified timeframe, the equity tokens are destroyed, and the equity is returned to the issuer without causing unnecessary disruption or volatility in the market. This is not a one sided situation, equity token holders have all of the benefits of holding legal shares of the issuing business, such as Bitcoin dividend payments, voting rights, buyout payments, and more. Just like shares in a stock, just by holding the equity tokens there is an automatic legal agreement between the equity token holder and the issuing business.

The Stamps platform is safe and transparent, making sure that users have access to the information they need to make informed choices. The STAMP Coin distribution is planned with a soft cap raise of $1 million and a hard cap raise of $89 million. You can read more about their upcoming ICO by clicking here.