Blockchain, Cryptocurrency and now ICO, what’s this buzz all about? Media and industries are pretty confident about its growth and implementations. If you need a reality check, whether to invest or not, here is an article to brush your ICO knowledge.

By now, everyone got a basic idea of what blockchain or bitcoin is? Currently, it is Initial Coin Offerings (ICO) that is creating the buzz. It has already raised over $1.3 billion for blockchain based start-ups.

In the real world, if you need funds you have to approach angel investors and venture capitalists. And for helping you, they demand a share of their equity or ownership. The only way you can avoid this is by going public. So, the same process of Initial Public Offering (IPO) is put on a blockchain base environment. This is from where ICO came but it has 3 major differences.

ICO decentralized with no principal authority

ICOs have fewer regulations

Any company can make ICOs, be it an established one or a start-up

Then it came what would a blockchain based company give away in exchange fof capital? That was when the “tokens” came into the scene. Tokens are encrypted currencies which are used only for making or receiving payments on the blockchain. There are two types of tokens- Usage tokens and Work tokens.

How does ICO work?

Pre-Sale Announcement: The early announcement about the project generates interest of investors. During this time the ICO launchers present a summary of the project to explain its goal and objective. Offering: Declaration about the transactions that will occur. It covers information like token generation and expenses, people involved and the expected outcome of the project.

PR Campaigns: PR or digital marketing campaigns to spread the word and attract more investors. It will gain the attention of customers too from different categories. So, at the end of the campaign, it will be the buying and selling process of ICO tokens. ICO Sale: Sale of tokens to start the fundraising. Even here also two approaches are followed for a successful sale.

Undoubtedly, ICOs represent a unique way of raising capital. With ICO, you get access to a larger audience with fewer risks, unlike banks. In addition, the opportunity to speculate the tokens makes it an attractive investment option for investors.

Having worked with many ICO startups right from scratch to ICO sale, our clients call us the pioneers in ICO Launching services. We will not only ideate your ICO product but will also help you to launch and market it. Contact us if you need any assistance to launch your ICO.