What is Initial Coin Offering (ICO)
The cryptocurrency market has grown dramatically for the last few years, and this tendency does not seem to cease in the nearest future. And it’s not only Bitcoin that contributes to the new ecosystem. Although it still remains one of the most influential blockchain-based digital assets and the most valuable cryptocurrency (with the market capitalization reaching $40 billion), there is now a new and even better capital-raising platform called Ethereum. Unlike Bitcoin, it is not so much a cryptocurrency as a full-fledged platform that has introduced a completely new way to fund the development of new crypto-platforms. And this revolutionary fund-raising method is presented by an ICO, or Initial Coin Offering.
At the core of an ICO lies the opportunity for anyone with a computer (and the internet connection) at hand to invest in various projects, initiatives or ventures by taking part in a public token purchase. For startup owners, on the other hand, ICO becomes a means to bypass the official laws behind a standard capital-raising process regulated by venture capitalists and banks. As a result, ICOs become one of the most innovative financial mechanisms in the world of traditional investments.
In this article, we will introduce you to the very concept of an ICO and how it can change the financial relations of the immediate future. You will also learn some practical stuff concerning the usage of ICOs from the perspective of both the investor and the startup owner. Continue Reading
