ICOs & IEOs

In the dot.com era, raising money for companies was a challenge that needed them to have an Initial Public Offering. Fundraising for companies is a job that takes more than just having a product that works. In the IPOs, the companies go through a process where they offer shares of a private corporation to the public. This issue of stock would raise money and determine the valuation of a company.

For a company to thrive, they need people to invest and these days, companies can raise money using nothing but a whitepaper and a cryptocoin. In the recent past, the IPO is challenged by new alternatives that promise to bring untold change to the markets.

These new ways are successful and they involve cryptocurrencies. We will learn about Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs), to make sure you understand how they are used to raise money for companies.

We will learn how they work and how you can make sure you invest in the right place at the right time to make sure you do not lose money. Smart contract platforms, like Ethereum and NEO, give developers the power to create dApps (decentralized apps) on them.

To get funding for a project, the developer has to issue a limited amount of the tokens. They may be in the form of utility or security. They also have to limited to make sure that a goal is present, for the fundraising to aim for. As demand rises, the supply of the tokes goes down. The value of tokens goes up.

There is a lot of marketing and other details that go into having an ICO. Once the fundraising hits the goals, they then distribute the tokens to the people who have bought them. If the company does not hit the goal, the participants will then get their funds back.