Gift Card Tokens & Why you should stay Clear of them

With the growing number of ICO’s we are presented with a lot of “Gift Card” token/coin offerings.

What are Gift Card tokens you may ask? Well its basically an unnecessary token. With the ICO hype going through the roof we are seeing many projects come out of nowhere with their own token that really isn’t needed. These projects are simply using the crypto hype to capitalize on easier fundraising tactics and attempting to utilize a worthless token which will unlikely carry or sustain any sort of value due to the fact that it will act as “gift card” for that particular project and nothing more. If there is no reason to stake a token or keep it in its native form, how will it appreciate in value? Please ask yourself this question before “investing” in your next project.

Many tokens will likely be exchanged to Bitcoin or even back to USD to become usable and therefore struggle to retain any sort of long term value which is what investors are typically looking for. A traditional investor will likely invest in an ICO and have the intention of holding the token for a long time for price appreciation, treating it just like a standard IPO. Having this mentality in the ICO space will destroy your wallet, a token has an assigned value by the distributor and to retain that value there needs to be a growing demand for the token. Since many ICOs are raising excessive amounts of money to build a product and giving ridiculously high early bonuses, it gives no incentive for early investors to hold onto their tokens as the early birds will see decent profit almost immediately after the token hits the exchange!

Forcing a native token to use a certain platform does not mean there will be instant value driven into that token or proprietary cryptocurrency, there has to be a massive benefit to holding the token in its actual form to have any type of sustainability. Unless the platform is one of a kind and has some amazing features that an investor will benefit from both short term and long term, the value of the token will struggle.

Don’t hesitate to visit our website at:

https://www.verifiedicos.com and join our Telegram to stay informed.

Verified ICOs is a dedicated community to help, protect and educate investors on ICO’s.