Do you know What is ICO (Initial Coin Offering) . You must have heard about this or not. Because today everyone wants to know about this Term ICO.
Nowadays ICO has become a topic of great discussion on the internet. But people do not know the right information about ICO. In today’s post, we are going to tell you about ICO What is (Initial Coin Offering). So friends, read this post till the end to know about ICO (Initial Coin Offering).
ICO full form
|ICO full form||Initial Coin Offering|
What is ICO (Initial Coin Offering)
ICO (Initial Coin Offering) is used as an option of crowd funding to issue a new cryptocurrency. When funds are raised through crowd funding for any crypto currency.
In the process, the company has helped its investors to raise funds. Provides them a token instead of a share or share in the company.
Investors can use this token as and when required. is issued by the company. Investors can sell this token to anyone. Or you can also keep it with you and wait for its price value to increase.
You can use this token to buy bitcoins using bitcoin, Ethereum or any other crypto currency. This tokens is used everywhere.
History Of ICO initial coin offering
In July 2013, the first token sale was organized by Mastercoin, Ethereum raised 3,700 BTC in its first 12 hours with token sales in 2014, which equals 2.3 Million dollars.
ICO and token sale have become very popular in today’s time.
Why is ICO used?
When any company starts. So he has to first raise money for his product. He has three main methods of raising money, which are explained below.
1. The first is that he should give shares in his company to the investors.
2. The second one is a bank . In this state, the company will also have to pay interest to the bank.
3. Before making a third product, take an order and deposit it and make and sell the product.
How ICO works?
When any cryptocurrency startup firm wants to raise funds through ICO. So before raising the fund, that company makes a plan. The company writes all the information related to the project on a whitepaper.
In which it is said that how much money will be invested in the project and how much money will the firm need? How long will it take for the firm to raise the fund? How long will this ICO campaign last and if the raised amount is less than the planned amount. So what happens like this. All this information is written on that whitepaper. Whitepaper is a very important paper of ICO.
Investors are more interested in purchasing Crypto currency during the ICO at lower rates due to lack of equity in most cases of ICO. In the beginning, ICO gets at low rates but as the company grows its price value and market value also increases.
Investors invest in ICO with the idea of buying low prices and selling them for more money. Investors gain a lot when ICO comes to the exchanges. Bitcoin has recently crossed 1000 Dollar. Whereas in 2011 it was just one dollar.
Advantages of ICO
The best advantage of ICO is that through it the companies are looking for investors. People get to invest in them. The same advantage is there for those investing in it.
Investors can invest in ICO very easily. ICO Investment is open to all. Anyone can invest in it.
Whenever the project starts, tokens can be purchased at a lower price. After the success of the project, their value increases significantly. And then you can earn a lot of money by selling them.
Disadvantages of ICO
ICO not only has its advantages, it also has some disadvantages. The liquidity given in the token is its place, but before investing in it, you should have complete information about the project.
And if you invest without complete information, then you can read to bear a lot of loss.
In view of its public love, nowadays many companies are also committing fraud in the name of ICO.
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