Reviews Of ICO (Initial Coin Offerings)

Initial Coin Offering (ICO) is a crowdfunding strategy utilized by new cryptocurrency companies to increase capitals. Back in ICO, some proportions of the newly issued cryptocurrencies are offered to folks that are interested in supporting the project. They are offered to swap for other established cryptocurrencies like Bitcoin, Fiat and Ether.

It is comparable to the principle of folks making a profit once the share they bought at the stock exchange rises in value. ICO is different than purchasing shares at a stock exchange cause you don’t get a share of the ownership right when you invest in the new tokens.

Brief History on ICOs

In the beginning stage, ICO was conducted by companies such as Mastercoin, Ethereum and Karmacoin. Ethereum conducted one of the biggest ICO in 2014 by increasing a total of $18 millions in the first stage of 2014. They break the record by increasing 3,700 Bitcoins that’s equivalent to $2.3 million dollars over the first 12 hours of the campaign. Kik ran the initial Egyptian ICO in September 2017 however, the project was interrupted by a phishing scam through the flow of a fictitious URL in the social websites. Ripple sold $1 billion worth of XRP tokens to investors in exchange for bitcoins and fiats in 2013.

Today, ICO earnings are now increasingly more popular with approximately 50 token sales being conducted every month. Starting from 2017, ICO has been growing at a fast pace with at least $2 billion worth of nominal earnings successfully ran. This proves it isn’t going to become a temporary method used by new cryptocurrency company to raise funds but it’s here to stay for extended term.

These days, ICO token sale is so popular that at least a few ICO begins daily. It has been predicted that more than $4 billion value of token sales will be conducted this year. Genesis Vision, a Russian based firm, conducted an ICO effort that runs from the 15th October 2017 to the 15th November 2017. They manage to increase a total amount of $2.3 million in the market presale.

How Can ICOs Fundraising Work?

A cryptocurrency company which wishes to increase capitals via ICO must offer a few details including job description, project purpose, amount have to be raised, percentage of tokens the company will keep, types of virtual currencies accepted, and the period of the ICO campaign. Backers who are interested can email the seller and ask for more details of the project before performing a transaction. If they raise the sum for the effort, they will carry out the strategy to finish the undertaking. Otherwise, they will return the money back to the backers.

ICO can be conducted to help raise funds for various kinds of businesses and charity organization. It has also been used as a tool by individuals to run frauds. Scammers would utilize means to increase the ICO value temporarily and abandon the job afterwards to earn a quick profit. Scams happen cause of the lack of regulation by the government. The same as any investment, there is a risk when coming to invest in the first coin offering.