Reviews of ICO (Initial Coin Offerings)

Initial Coin Offering (ICO) is a crowdfunding method utilized by new cryptocurrency businesses to raise capitals. Back in ICO, some percentages of the newly issued cryptocurrencies are offered to people who are interested in supporting the project. ICO rating sold to exchange for other established cryptocurrencies such as Bitcoin, Fiat and Ether.

It’s similar to the principle of people making a profit once the share they bought at the stock exchange increases in value. ICO is different than buying stocks at a stock market because you don’t receive a share of the possession right when you invest in the brand new tokens.

Short History on ICOs

Ethereum conducted one of the largest ICO in 2014 by raising a total of $18 millions in the early phase of 2014. They violate the record by raising 3,700 Bitcoins that’s equal to $2.3 million dollars within the first 12 hours of the campaign. Kik conducted the initial Egyptian ICO in September 2017 but the project was disrupted by a phishing scam through the flow of a fictitious URL from the social media.

Today, ICO earnings have become increasingly more popular with around 50 token sales being conducted every month. Beginning from 2017, ICO has been growing at a fast pace with $2 billion worth of token sales successfully ran. This demonstrates it is not likely to become a temporary method used by fresh cryptocurrency business to increase funds but it’s here to stay for long term.

Nowadays, ICO token sale is so popular that at least a few ICO begins daily. It’s been predicted that over $4 billion value of nominal sales will be conducted this year. They figure out how to raise a total amount of $2.3 million at the market presale.

How Does ICOs Fundraising Work?

A cryptocurrency firm that wants to raise capitals through ICO must provide a couple of details including project description, project purpose, amount need to be raised, percentage of tokens the company will keep, kinds of virtual currencies accepted, and the timeframe of this ICO campaign. Backers that are interested will email the seller and ask for more details of this job before performing a transaction. If they successfully raise the sum for your campaign, they will execute the strategy to finish the project.

ICO can be conducted to help raise funds for various types of companies and charity business. It has also been used as a tool by scammers to conduct frauds. Scammers would utilize means to increase the ICO value briefly and abandon the job afterwards to earn a quick profit. Scams happen cause of the lack of regulation from the government. The same as any investment, there’s a danger when coming to put money into the first coin offering.

No statistic about the business that runs the ICO is granted so it’s hard to generate a prediction. Backers usually would only check out info such as who will obtain the accumulated money, and the social networking profile. To make a successful investment in ICO, one wants to be patient and willing to devote time to conduct research about the company.