Benefits of launching an ICO.
What is ICO: Blockchains Technology and Its Benefits
Blockchain is not Bitcoin or other cryptocurrency. No. It’s just cryptocurrency using blockchain. Simply put, a block is a group of transactions. A chain is a group of blocks connected to each other. Put the two words together, and there it is — blockchain.
All of these blocks are linked together in chains to form a public database. This database is public because it is shared with hundreds or even thousands of computers. We can think of this computer as a server for the blockchain / database.
Advantages of launching an ICO
There are a multitude of reasons why half of Carlos Domingo’s audience at 4YFN raised their hands after his question. Reasons why, since July 2014, when Ethereum launched the first ICO in history , the total collected through this instrument amounts to more than 12,000 million US dollars. ICOs are a financing instrument with many advantages. These are some of them according to two experts, Emilie Allaert (Luxembourg House of Financial Technology) and Lindsay Lin (Stellar.org), and the blockchain company RefToken .
Quick and easy . Any company can start an ICO through various platforms like Ethereum or Stellar.
Access to an international and online market . The potential market is made up of all those who have internet access. The campaign can be promoted through social networks, specialized websites and forums.
All the decentralizing power of blockchain technology . The particularities of blockchain technology itself (a shared, decentralized, and secure network) influence the processes of an initial public offering . Furthermore, by eliminating intermediaries, the resources required to complete each transaction are much less.
Liquidity . For investors and consumers, one of the great advantages is that cryptocurrency markets tend to be very liquid. That is, usually, large amounts of capital can be acquired in a short time.
Democratization of investment . Investors do not have to be part of a select City of London club to be able to invest. Access to tokens is public and can be achieved from anywhere in the world.
Great profit potential . The data in our Spotify example was fictitious, mostly because the profit margins were too low to be an ICO. The price of the popular bitcoin was 90 euros in June 2013. Right now it is worth about 6,500, but it exceeded 16,000.