The relatively new funding venture by crypto companies, that is similar to the initial public offering has come to lead the crypto space, and is more or less the next phase in establishing the cryptocurrency as a crowd-funding concept to widen the reach of digital currency across the globe. Overall, there has been more than $200 million raised through ICO that is phenomenal, in terms of the growth and the trust that people have placed in the digital assets over the years.
More insights on ICO
The initial coin offerings by crypto companies, startups to get access to funding through the issuance of digital tokens that are proprietary, anyone can participate in the ICO and obtain the tokens without any intermediaries or restricted with any regulations. The tokens can be traded by the users within the platform continue reading for the purchasing and selling in the decentralized exchanges that double as crypto trading platforms.
- the funds raised by the ICO are used for the further research on the Blockchain, and other decentralized applications
- this decentralized manner of raising funds, looks easier way out, to venture capitalistic who have many processes and timelines to be followed, the ease of getting crowdfunding for ICO is simpler
- the prices of cryptocurrency are steadily increasing, hence ICO token buyers stand to gain, rather than venture capital firms who gain initially and somewhere in the middle it is a slow pitch
- it is easier and faster to raise ICO than other means of capital for the business, Bitcoin Trader and other trading platforms will slowly tie up with the exchanges to raise the ICO tokens
- with the key authorizing a series of characters or numbers to entitle the token holders to redeem in case of price rise, sell or store them in their private wallets
- the digital tokens, however, do not have any attachment in the rights of purchasing the shares of the company or the assets
- startups have been finding the ICO as the best way to raise the capital funding without any financial statements or other regulations in place, however, there are regulations that have been in the process to have certain conditions to be fulfilled to issue ICO
Since there was no equity in the offering, often the ICO managed to avoid the regulatory laws that are not stringent on the entire crypto scene, however, there is a lot more going on today, to have a good mix of Crypto and traditional public offerings to raise the capital outlay of companies.