Why did ICOs Come to Life?

The best things in life are free… until you need to fund its enhancements. Air is free, but not oxygen cylinders. Mineral water is free, but bottling it down the Fiji mountain is not. Dreams are free to conceive, but giving them birth can really take the bite out of everything. And every business starts with a dream.

When it comes to starting any business venture, funding is the heart pumping blood into every other organ. To secure this vital organ, entrepreneurs often have no choice but to approach angel investors and venture capitalists, battering equity in exchange for funding. For those who’d rather retain one or the other form of control over the venture they had cobbled together from the sweat of their brows, going public through an IPO (Initial Public Offering) is the only resort.

IPO is the public sale of a company’s private shares for investment capital to fund its further expansion and development. Though open to the public, investors must pass certain regulatory requirements that differ from one jurisdiction to the other, limiting participation.

Companies looking to go public through an IPO must fulfill a number of mandatory requirements, exhibit a proven track record, and possess a minimum earnings threshold. With these requirements established, the company can commence with the lengthy process of putting together a team of underwriters, lawyers, certified accountants and experts from the Securities and exchange commission to create and vert the most important piece of literature the company will ever create in its history — the prospectus.

The prospectus is both the company’s legally binding declaration of its intention to issue public shares and the required information for investors’ due diligence. This document often undergoes several revisions based on feedback. In between the preliminary and final prospectus are the roadshows designed to drum up and build excitement from potential investors across the state or country.

Several months and millions of dollars later, the IPO is a success and the company now has the funds it needs, alongside greater scrutiny of its finances by the government and the public, regulatory oversight and supervision by appointed authorities, and pressure to keep stock prices at appreciable levels.

ICOs have no such shackles.

Modeled after IPOs, ICOs (Initial Coin Offerings), are decentralized mechanisms for funding the development of blockchain-based products. Governed by autonomous smart contracts that eliminate the need for third-party mediators, this multi-billion dollar industry has enabled innovators table and receive funding for their vision based on the strength of their whitepaper. No need for expensive lawyers, banks, and their retinue.

However, a recent spate of high-profile scams by malicious actors taking advantage of the community’s goodwill is threatening the growth of this nascent industry. A threat CentrumCoin is set to address through its groundbreaking incubator ecosystem.

CentrumCoin is repositioning the crypto fundraising market of today to lead the promising developments of tomorrow. In a world increasingly driven by data, the blockchain has the potentials to secure and render operations more effective through the funding of projects with market-leading capabilities. CentrumCoin’s world-class team is giving innovators the platform they need for exposure while ensuring that investors can confidently fund tomorrow’s developments without any uncertainties.