ICO Intro: “What, Why and How” Are We Going to Learn About ICOs
ICOs: Introduction to Initial Coin Offerings (ICOs)
The ICO is now known as the mother of crowdfunding projects and since 2017, many startups have used the convenient method to make sure they get the capital needed to get their projects off the ground.
In IPOs, there are many rules that you need to operate within so that you can get to have one. As a company, this may take too much time and too much work that a lot of startups are either unwilling or unable to provide.
ICOs have become the way that a company can raise funds and entirely circumvent the process. The only thing you need to start an ICO is the website with the wallet where the money is sent. There are no legal boundaries, no investor protection and it is completely anonymous.
ICO Intro: “What, Why and How” Are We Going to Learn About ICOs
As we have touched upon the paragraphs above, it is clear what the initial coin offerings are. They will help anyone who creates them to raise funds that will help in making projects possible. So, in the IPOs they would offer shares to the public. What do they offer when there is an ICO?
Well, the thing is that the ICO offers tokens that have an equivalent value to the shares the company has. If you invest in an ICO, you will get cryptocoin or tokens that will represent the value of the shares you have.
We know what a blockchain is, the cryptocurrencies and how it all works. When you are in an ICO, you will get participation in the project because of the decentralized nature of the blockchain. Coin ICOs sell participation while token ICOs sell right of ownership to royalties.
