What is An Initial Coin Offering? ICO as Form of Crowdfunding Is Reshaping Startup Scene
Cryptocurrency initial coin offering is an alternative form of crowdfunding. It is a way of getting funding to business projects. It emerged as an unexpected side benefit of worldwide crypto evolution and since then initial coin offering is totally reshaped startup scene.
Initial coin offerings (also known as ICOs) have been so succesful as a crowdfunding method because they are much easier and convenient than traditional methods.
ICO is basically an event that (usually) takes place over reasonable period of time, mostly one to two weeks. During that time everyone is allowed to buy newly issued cryptocurrency tokens of said project.
Almost all ICOs have a goal or limit for funding, which means all tokens sold will have preset price that will not be changed during the period initial coin offering takes place. This is also the reason why token supply is limited and not a subject to change during initial coin offering.
There are tens of new cryptocurrencies created daily and hundreds of new initial coin offering projects created every week. Some will explode and bring in millions, but most of them fail. Some of them worse than others.
Lets talk about some of the most succesful ICOs to learn how they set themselves up being so genious and worldchanging.
Of course ethereum – is now the second biggest cryptocurrency in the world. In short it can be explained as open software platform based on blockchain technology that enables developers to build and deploy decentralized applications.
With their first try at initial coin offering, Vitalik Buterin and his Ethereum team had tremendous success when their investors ROI at some point turned out to be over 230,000%! Ethereum token was initially worth only 31 cents, but has been trading between 500-800 dollars last few months.
Because of the fact so many crypto tokens are built from the sratch usingthe Ethereum Token Standard, the Ethereum blockchain is now processing over half of all USD value in all blockchains combined. That is significantly more than Bitcoin, and it is growing by the minute.
