What is an ICO (Initial Coin Offering) and its benefits?

Feb 19, 2019
ICO or Initial Coin Offering is a fundraising program launched on behalf of a company or an individual to raise crypto funds. The project is usually related to the blockchain technology or cryptocurrencies, say coin & application development and service-oriented processes. The investors who are interested in the project start to invest in it with digital currencies.

ICO-The Basics
When a cryptocurrency or blockchain-based firm needs to raise funds through an ICO, it usually creates a whitepaper that explains the plan from beginning to end. Some of the aspects covered in a whitepaper are listed below.
  • What is the project about
  • What are the goals
  • What changes the project will make
  • How much fund is required to process the venture
  • How much digital tokens the project owners & the investors share
  • What is the type of currency accepted
  • What’s the duration of the ICO campaign

During the ICO program, participants and supporters of the fundraising company purchase some crypto coins, either with fiat or digital currency. The coins are also known as tokens and they replicate the shares of the firm, sold to investors in an IPO-based transaction. In case the funds raised fail to meet the minimum requirements, the money will be returned to the supporters and the ICO will be declared unsuccessful. If the funds are met within the designated time, the money will be used to initiate a new scheme or to complete the old one.

Benefits of an ICO
  • ICOs facilitate a new method for raising funds
  • Investment is usually higher than the existing campaigns.
  • ICO distributors can create prototypes with customizable options.

Blockchain Firm is an ICO development company, assisting startups with a sturdy and reliable ICO launch platform. They also aid companies with readymade, customizable, & cost-effective ICO dashboard.