What is blockchain ICO? Is it A new way for cryptocurrency startups raise money?
Initial Coin Offering (ICO)
It is a process of capital raise funding for Blockchain-based projects and businesses. The term ICO is used to describe the sale of Blockchain base virtual tokens for the purpose of releasing the new cryptocurrencies.
Cryptocurrency startups, mining farms or an individual will sell a percentage of pre-created virtual tokens before releasing a new coin to the network and raise fund for their projects by inviting investors to buy the virtual tokens by investing on it.
The Token Economy:
Here the tokens are used to make the new crypto coin as a legal tender by selling to multiple investors through exchanging it against other cryptocurrencies.In general, many ICO Will Accept ETH (Ethereum Coin), Which we call as Ethereum based ICO.
This fundraising process already exists in the marketplace in the name Initial public coin offering (IPCO) where fiat currencies are acceptable to exchange with virtual tokens.
We could call this as an Initial token offering(ITO), using this tokens either you can sell it to others through an exchange, or you can make use of benefits through a fiat money.
Bitcoin fans say this token economy is the trending cryptocurrency fundraising business model for projects and businesses. Hope the usage of cryptocurrency will top to the peak through the arrival of ICO.
The first ICO was for Mastercoin in 2013. Ethereum raised money with an ICO in 2014. ICOs are now extremely popular. As of May 2017 there were currently around 20 offerings a month, and a new web browser Brave's ICO generated about $35 million in under 30 seconds. There are at least 18 websites that track ICOs.
So if you are searching for a trend in cryptocurrency network, a look at ICO Will give you a chance for you to make a good start.