From the beginning of entrepreneurship, there is a single key that has enabled men and women around the globe to leap into the field of business, both on a small and large scale. A charity foundation known as Kiva allows people to lend money to small business throughout developing nations. While the new Kickstarter program provides microloans for entrepreneurs and artists alike. Online opportunities like these are widespread and they aim at that one key that gets a business moving — fundraising. An entrepreneur may have a dream, but fundraising is what helps to make it a reality.
An ICO, known as an Initial Coin Offering, is fundraising in the world of blockchain and cryptocurrencies. With cryptocurrencies flooding the financial market, founders looking for loans start an ICO for the money they need to get their project or projects on the market. So what is an ICO?
Basically, an ICO is an initial investment in exchange for crypto tokens (also known as crypto coins). An ICO is similar to an IPO, Initial Product Offering, where investments are exchanged for shares of the company. Instead, an ICO operates through crypto tokens not physical shares of a project.
ICOs have had more success than much alternative fundraising activity. Just as cryptocurrency and blockchain are changing the financial sector, ICOs are taking significant strides into the world of fundraising.