What is an ICO?
DEFINITION of ‘Initial Coin Offering’ (ICO)
An unregulated means by which funds are raised, in the form of a cryptocurrency, for a new venture in the business world. An Initial Coin Offering (ICO) is used by firms as a channel to raise funds without passing through the rigorous, stressful, barred capital-raising process required by business angels, venture capitalists or banks. In an ICO campaign, a percentage of the issued tokens is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Ethereum and/or Bitcoin.
PROCESS of ‘Initial Coin Offering’ (ICO)
When a firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a so called White Paper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of currency is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed crypto-coins with fiat currency (convertible money) or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it.
Although there are successful ICO transactions on record and ICOs are poised to be disruptive innovative tools in the digital era, investors are cautioned to pay attention as some ICO or crowdsale campaigns are actually unsuccessful. Because these fund-raising operatives are not regulated by financial authorities, funds that are lost due to unsuccessful initiatives may not be recovered.
Introducing the world’s safest payment platform for buyers and sellers.
37.700.000 $ Collected
A decentralized marketplace for turning every virtual item into a real commodity.
10.900.000 $ Collected
Leading platform for the sale of activity tokens with the capitalization of coins issued.
48.000.000 $ Collected
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