Save time and money through an ICO!
What if your company has a great idea and needs funding to realize it. Typically, you’ll go to venture capital firms, pitch your idea and hope for the best. If they are not interested or don’t see the value, they will not finance your idea. Even when you succeed, the venture capitalists will take a share in your product, which doesn’t make your company the full owner of it. You can as well go and try to get a loan at the bank, where you need to pay interest on it. Another way is phoning up other investors until someone is willing to take the risk because he believes in it. Even then you also need to pay interest or give a share to the investor. This requires a lot of time, effort and can be expensive.
An alternative way is crowdfunding. When a product is introduced on crowdfunding platforms like Indiegogo or Kickstarter, investors and buyers know exactly what they’ll get. For example, when KAISR started their crowdfunding campaign, investors knew they’ll get 1 KAISR Original for $86. They can compare the products to other people’s product to decide whether it is worth that amount or not.
Initial Coin Offerings — ICO’s — are an alternative to crowdfunding. It’s a way for startups to raise money outside the traditional venture capital world. Usually, a percentage of the coins is kept by the team to pay for the company’s needs and a percentage is sold through the ICO. People get coins when they fund the project. These coins can suddenly become x times more worth than initially sold. The most profound example in the atmosphere of ICO’s is Tezos. It raised a record breaking $232 million in less than a month, which is the highest value raised by an ICO until now! This is a huge trigger for people to invest in an ICO.
“ICO’s give the power back to the people!”
This explains why ICO’s are the hot new thing in the blockchain community. Everybody wants to carry out one. For example, take a look at Burger King Russia with their WhopperCoin. But not only companies are interested, even governments like Estonia. They want to launch their government-backed ICO called Estcoin in their e-Residency platform.