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What Are Initial Coin Offerings?

What Are Initial Coin Offerings?

We are seeing a new kind of gold rush, this rush however is not for the next big oil field or the race of who’s going to own a most productive diamond mines. This rush is for something that exists solely in the virtual realm. The world has awoken to the huge and endless potentials of the cryptocurrency industry and everyone wants to get a cut of this juicy cake. This is a short piece on ICOs.

What is an ICO?

An ICO or initial coin offering the cryptocurrency world’s answer to the more familiar IPO or Initial Public Offerings we know companies do. However on an ICO cryptocurrency industry startups begin a crowdfunding like campaign to raise money for the new venture, where the general public is solicited to buy-in early into the cryptocurrency at very cheap prices with the hope that the eventual product will explode into the next big thing in the industry. And in keeping with the decentralized and borderless nature of the industry, ICOs are open to be subscribed to by anyone with interest wherever they may be from. Here there are no red taps or across stateliness restrictions. As long as you have the money and you are truly interested you can buy-in into an ICO no matter where it originates from

Number of Initial Coin Offerings

There have been many ICOs in the years preceding 2017, but the sector truly fully bloomed this year which saw cryptocurrency startup raise tens of billions of dollars in fresh funding for their new ventures. The cryptocurrency industry as a whole has a wonderful year with ICOs leading the way, and the main reason that there are so many fresh ICOs can be traced to the extremely high demand the general public has in finding the next Ethereum or the next Bitcoin. The possibility of high yield over short periods the industry presents is an unavoidable attraction to consumers worldwide.

Which ICO should I Buy?

With so many ICOs on offer it can be very challenging for an investor to make the right decision as to which ICO to buy and which to ignore. There are as of yet no competent rules or regulations that guide ICOs and as such you will find close to zero legal advice about it. However, a good starting point is to carefully study the WHITEPAPER of the ICO. This is a document blueprint that outlines the vision of the startup, what problems it seeks to solve using their new invention and with what technology they intend to solve it.

A good ICO is backed by a solid plan and vision as to what they are set to achieve. It is also helpful to run a check on the team that is floating the ICO and know of any reputation or previous milestones they achieved in the industry, And if you aren’t too clear about the whitepaper, do check on the online cryptocurrency forums and others like Reddit to see what ardent industry watchers make of the new ICO. If there are problems, you will get a fairly good picture through the reviews the ICO is getting.

What You Will Get When You Buy into an ICO

In exchange for your fiat currency or alternate cryptocurrency such as Bitcoin or Ethereum, you will be allotted a proportionate number of tokens of the new cryptocurrency which will be at a given price. These tokens will eventually be exchanged with a corresponding volume of the actual cryptocurrency when it is finally released. There are tokens here, not shares as in the case of the stock market

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  • firat yay says on

    good essay, thank you

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