ICO - Initial Coin Offering on Blockchain

ICO stands for Initial Coin Offering is a mechanism in Crypto world to generate funds in which new projects owners create their own Tokens and sell them to the investors in exchange of Crypto currency like Bitcoin or Ethereum.

Credit

Indian markets have always relied on IPO (Initial Public Offering) where the company raises the funds through offering Shares of the company to the public. A company who is issuing the IPO needs to complete many formalities and needed to get themselves registered with the Indian Stock exchanges - SEBI before issuing IPO.

With Digital currency in focus, and growing digitisation world, gone are the days, of IPO, (Initial Public Offering) now a day, many new start up in India are focussing on generating the funds through the ICO’s.
ICO are very similar in line of IPO. In ICO the Project owners generate their own styled Crypto Token and exchange them with the investors Bitcoin or Ethereum.

Credit

Let see an example… I have a Farmland, and engage in cultivating Rice farming. I planned to export the high-quality Rice from my Farmland.
I bring my farmland into Blockchain and make and ICO token to get the product out to the world. With my project whitepaper, I will raise ICO token and value it at suppose 2000 coin for 1 BTC. I will sell the coin against the investments using block chain. If my projects yield profit, the investors get the share of it.
The project owners frame their own Rules and Regulation for funding the project. They can set the initial value of the token and duration of ICO.

The main hurdle that many Indian start-ups are facing are lack of basic understanding of Block chain within India and the Government norms on Crypto-currency. Indian government are not tendering Crypto-currency as legal. This lead many start up to venture their projects on other countries, Europe, US, and Singapore are some of the major popular destination.

Professional network platform in education space SpringRole, AI-based sports platform Machaao, gifting platform EasterEgg, and fintech company Cashaa are all Indian startups using blockchain platforms and looking to raise funds through ICOs

However competing with outside countries is very challenging too.

ICO has become a dominant topic of discussion over the block chain, and with easy framework structure, the scope is very **Vast, and Boon** to many Start-up Projects in India and also around the world. Would love to see many other follow the same for a bright crypto future.

This is a peace of news i came across recently where many Indian start up are approaching other countries for ICO funding to their project, thereby creating a lot of opportunities and growth.

Keep Steeming....Steem on!!!

Namaste

@steemflow