ICO has proven to be a revolutionary way to raise money for many companies and projects. ICO can be said to be a mixture of conventional methods and advanced techniques. The main thing to consider here is that investors who invest in the ICO will be 100% risk-free due to the technology used.
So far, most ICO funds have been raised via Bitcoins (BTC) or Ether (ETH). During the ICO, the project creates a Bitcoin or Ethereum address to receive funds and then displays it on the corresponding web page. The procedure is like opening a bank account and then showing people on a certain web page to send money.
An initial coin offering (ICO) is basically an illegal way of raising crowdfunding through various cryptocurrencies (fiat currency in some cases) and cryptocurrency organizations operate to obtain the capital funds needed to run the project. In an ICO, a certain amount of newly issued cryptocurrency is sold to investors in exchange for any legal tender or any other cryptocurrency. It can be called token sale or crowd sale, taking the amount of investment from investors and offering some features related to the project to be launched.
IPO, or Initial Public Offering, is a process related to ICO, where investors receive shares owned by the company. While in the ICO, investors buy the company’s coins, which can increase in value if the business expands.
The first token sale, i.e. an ICO, was conducted by Mastercoin in July 2013. Ethereum raised money through an ICO in 2014. ICO has taken on a completely new definition in recent years. In May 2017, approx. 20 offers, and Brave’s latest ICO web crawler generated around $35 million in 30 seconds. As of the end of August 2017, there were 89 ICO coin sales totaling $1.1 billion since January 2017.
Investors send Bitcoin, Ethereum or any other cryptocurrency to the given address and then in return get new tokens that can benefit greatly if the project succeeds.
- ICO is basically done for cryptocurrency based projects which are based on decentralized technique. So, naturally, such projects would only attract investors who have a strong interest in the concept of cryptocurrency and respect the technology used.
- An investor’s document remains in the form of a web page, white paper or web publication. Some of these documents show specific details of the project, while others literally falsify its features to mislead interested parties. So before you trust any white paper or electronic document, it’s best to do a quality check.