It is advisable for one to conduct their own research regarding ICOs and their limitations or advantages as the internet is not a good financial adviser when it comes to how one should handle their money, however, a quick overview of the way an ICO works, its token economics and its white papers is a good dive into what the ICO stands for.
A recent upcoming ICO is one that goes by the name of Acropolis. Acropolis wants to create a platform for decentralised pensions on the blockchain using smart contracts. It has got a twenty five million dollar hard cap whereas its total token supply is 900 million tokens. It is going to be selling 40 percent of its tokens to the crowd sell with 20 percent being given to the team. The thing one really gets attracted to with it is that under the current system, pension plans are outdated and basically manned by separate entities which really works against individuals who frequently switch jobs. Acropolis recognises this and wants to solve the pension deficit problem by offering a gateway for fund managers to build a portfolio of assets that are tokenized on chain and available for all the investors to see.
With the negatives, there are many things to be considered. It is not to criticise their business or their business model. Their business model is excellent and quite legitimate. This is more to do with the idea and the niche that Acropolis is working in. Acropolis target audiences are conservatives over the age of 40. Saving themselves from retirement does not fit into their paradigm. The idea of having a decentralised pension on the blockchain is in many ways the mindset of get-rich-quick millennial. Secondly, there exists the issue associated with niche. The global pension industry has various regulations and is dominated by industry heavyweights such as Vanguard and Fidelity which together have over seven point five trillion dollars of assets under their managements. Finally, putting retirement pension funds on the blockchain requires a great deal of trust. Why would anyone use this service when they could pay a premium to Vanguard or Fidelity for their own peace of mind. In terms of token economics they are way below average and the reason for that is that they are asking for too much money. 25 million dollars for an ICO operating in the finance niche which typically performs quite poorly is just too much money. The multipliers aren’t there for your return on the investment. One could probably make two times as much in the medium term if one is lucky. But in the short term it is not really worth flipping and in the long term there exists too much uncertainty. On the other hand, when it comes to their team they are quite above average. They have a proven track record in the finance and related sectors with former employers including Mercer, Lehman brothers, Reuters and Ernst and Young. Their hype, unfortunately, is quite low as not many people are aware about this project yet.
One has to know that Acropolis is an excellent project but the idea is not really appealing and if one speculates upon its future one would find out that it is not that rewarding. But of course, one could be wrong.
Keeping all that in mind, it is essentially up to one’s own self whether they choose to invest in an ICO or not. Research, analyse and approach with caution. The world of ICOs is your own playing field and whatever way you choose to venture out in it, make sure you are fully equipped and motivated before doing so.