ICO (Initial Coin Offerings) - by analogy with the IPO (Initial Public Offering - the first public sale of company shares) is a way of attracting primary capital using crypto currency. It is also an unregulated crawfunding tool using crypto currency, which can be a source of funding for start-ups. In ICO, a percentage of the newly released crypto currency is sold to investors in exchange for a legal tender or other crypto currency, for example, bitcoin.
The first ICO was held by Mastercoin in June 2013. The Bitcointalk forum announced the launch of the project's crowdaming. This ICO collected more than 5 thousand bitcoins.
ICO is such kind of crowdfinding - investors are invited to purchase cryptonotes (tokens), which are addressed in the business model and after the project is gaining the cost of these tokens grows. Also ICO has deadlines.
After the completion of the ICO, tokens can be bought or sold on exchanges, and the token rate varies depending on supply and demand, but usually in successful ICO, the exchange rate grows significantly.
In some projects, it is possible to passively earn dividends, depending on the part in the project (the number of tokens). This usually happens with the help of "smart contracts" in Ethereum.
The most successful ICO is the sale of Ethereum tokens. It attracted $18 million with the current market capitalization of the project of about $1 billion.
On April 10, 2017, Blockchain Capital raised $10 million in two hours after the start of crowdsale (the sale of tokens to the ICO).
In early May 2017, the project to create a Visa debit card based on Ethereum tokens during the ICO raised $ 12.7 dollars in 20 minutes. It was the lightning-fast ICO in history.
The ICO has a similarity to the traditional IPO - both involve selling the part of the project when the investor sees the prospect, but at the same time is willing to risk their money.
The difference between ICO and IPO is that ICO participants are not required to have a large capital for participation, you can become an ICO participant even with one dollar in your pocket.
Why is everyone talking about ICO?
In 2017, thanks to the ICO, about $180 million of investments were raised.Unfortunately, many ICOs turn out to be fraudulent schemes, and investors simply lose their money, as a result they can’t do anything with bought tokens.Recently, the interest of experienced investors and newcomers to Internet earnings has increased significantly in relation to ICO. While some ICO organizers try to just make money on popular topic, which for some time will be "on the wave", other, more responsible and creative organizers offer investors with interesting solutions. Our professional team selects the most interesting and profitable ICO, which you definitely need to pay attention to.
Why invest in tokens issued on ICO
In addition to the ability to resell acquired tokens on the exchange after the completion of the ICO, it is usually offered also the opportunity to use some services at a lower price, buying them for tokens, which you bought much cheaper than they cost after completion. For example, ICO offers you to purchase tokens, for which you can buy movie tickets in the future. First you buy them for a small amount, but when the rate grows you can buy tickets at a much lower price.
In view of all of the above, our Greencly team warns you that not all ICO organizers are conscientious, you can well give money to scammers and get nothing in return. Similarly, the token exchange rate may not grow or not enter the exchange, but with the right approach, you multiply your capital.
The most relevant and promising ICO you can see in the monitoring unit in our website. Good luck!