ICO has proven to be a revolutionary way for many companies and projects to raise money. It can be said that ICO is the combination 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 of the ICO funds have been raised through Bitcoins (BTC) or Ether (ETH). While conducting the ICO, the project produces a Bitcoin or Ethereum address to receive funds and then displays it on the respective web page. The procedure is the same as opening a bank account and then displaying it on a particular web page to people so they can send money.
Initial Coin Offering (ICO) is basically an illegal way of raising collective funds through various cryptocurrencies (fiat currencies in some cases) and is operated by cryptocurrency organizations to obtain the necessary capital funds to run the project. In an ICO, a particular part of the recently issued cryptocurrency is sold to investors in exchange for any legalized offering or any other cryptocurrency. It can be said as a token sale or collective sale that involves taking the investment amount of investors and providing them with some characteristics associated with the project to be launched.
The initial public offering, that is, the initial public offering is a process that is somehow related to the ICO in which investors receive shares in the property of the company. While in ICOs, investors buy coins from the company that may increase in value if the business is amplified.
The first token sale, that is, an ICO, was made by Mastercoin in July 2013. Ethereum raised money through an ICO in 2014. ICO has adopted a completely new definition in recent years. In May 2017, there were approx. 20 offers, and also a recent web browser, the Brave ICO generated around $ 35 million in just 30 seconds. As of the end of August 2017, a total of 89 ICO coin sales worth $ 1.1 billion had been made as of January 2017.
Investors send Bitcoin, Ethereum or any other cryptocurrency to the indicated address and then in return they get new tokens that can greatly benefit them if the project is affected.
- ICO is basically done for cryptocurrency-based projects that are based on a decentralized technique. So naturally, such projects would oblige only those investors who have a keen interest in the concept of cryptocurrency and are friendly to the technology used.
- The document that belongs to an investor remains in the form of a web page, technical document or web publication. Some of these documents show exact details about the project, or others literally falsify its characteristics to deceive the interested parties. So before relying on any whitepaper or electronic document, you’d better do a quality check.
