A Brief Guide to ICO (Initial Coin Offering)
ICO has transformed the way a lot of companies raise money for their projects. ICO can be considered as a mixture of the advanced techniques and traditional methods. One of the best thing about ICO is that investors who invest in it can guarantee a zero risk because of the use of technology.
Until today, the majority of the ICO funds have been gathered via the Ether (ETH) or Bitcoin (BTC). While doing the ICO, the projects produces an Ethereum or a Bitcoin address in order to receive funds and shows it on the respective webpage. This process is similar to applying for bank account, then shows it after on a specific webpage to individuals in order for them to send the money. Basically, Initial Coin Offering (ICO) is a way of collecting crowdfund through multiple cryptocurrencies and it is run by cryptocurrency organizations to get the capital funds needed to complete the project. In blockchain ico method, a specific part of the recently issued cryptocurrency is being sold to the investors. A crowd sale or token sale is also involve in taking investment amount from the investors and giving them with some features related to the project about to be launched.
Investors send Ethereum or Bitcoin or any cryptocurrency to the address provided and in exchange they will acquire new tokens that would become very beneficial for them if the project succeeds. The document that belongs to the investors is in the form of a webpage, whitepaper or web post. Some of these documents displays the precise details regarding the project, while there are others also who try to fake its features in order to misguide those who are interested. So, before you trust on any e-document or whitepaper, it is best if you go through quality check first. Know the ico definition here!
A quite similar process called Initial Public Offering (IPO), in which the investors also receive shares in the ownership of the company. In ICO, the investors purchase coins of the company which can increase exponentially in value as the business also expand.The first ever token sale of an ICO was carried out in July 2013 by the Mastercoin. Ethereum also collected through an ICO in 2014. ICO has been absolutely redefined in the recent years. In May of last year, there were about 20 offerings, as well as a new web browser Brave's ICO produced $35 million in just only 30 seconds. Lastly, from the early month of last year until the end of August of the same year, an overall number of 89 ICO coin sales worth $1.1 billion had been directed. To get more tips on how to choose the best cyrptocurrency, go to https://en.wikipedia.org/wiki/Foreign_exchange_market.