Initial Coin Offering: An Overview
This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.
ICO (Initial Coin Offering) is becoming the latest trend in the cryptocurrency industry. Initial Coin Offerings (ICOs) are creating a rage in the recent times. Several organizations have managed to raise around $1.5 billion through this lucrative fundraising mechanism this year itself. If you are still wondering about what ICO is all about, then read this article to unveil this highly novel scheme that has been putting the cryptocurrency industry into fire. As the overall concept of ICOs is getting hotter day by day, our experts explain the meaning & the overall mechanism of this famous cryptocurrency crowdfunding scheme in detail.
What is an ICO (Initial Coin Offering)?
An ICO (Initial Coin Offering) is a new concept that has emerged from the roots of crowdfunding along with cryptocurrency and blockchain technology scenarios. An ICO also goes by the name as “crowdsale”. Basically, this is the phenomenon in which a particular company releases its cryptocurrency for the purpose of crowdfunding. A typical ICO functions in a similar manner to that of an initial public offering (IPO). The only difference between the two is that rather than offering shares of the company in case of an IPO, an organization offers digital assets known as “tokens” in case of an ICO.
The crowdsale of a digital token is similar to some crowdfunding campaign. The only difference is that this mechanism makes use of the special cryptocurrency technology for verifying the different transactions. The digital tokens are not just serving as proper stand-ins for the stocks in this case. Instead, these can be set up in a manner such that the holders of the same can get additional services like cloud storage space, instead of the share of the particular company.
History of ICO
One of the first cryptocurrencies that was distributing the concept of ICO (Initial Coin Offering) was Ripple. During the time of early 2013, Ripple Labs had started the development of the Ripple. This was known as the “payment system” and the company was able to create up to 100 billion XRP digital tokens. For funding the development of the Ripple cryptocurrency platform, the company sold these digital tokens.
In 2013 itself, another company named Mastercoin claimed that it would be creating a separate layer on top of the Bitcoin cryptocurrency. This would be done for tokenizing the transactions over Bitcoin and executing the smart contracts. The developing company was able to sell around some millions of Mastercoin tokens against the cryptocurrency Bitcoin. In return, the company received a crowdfunding of around $1 mio.
Several other types of cryptocurrencies have also been funded with the help of ICO. For instance, Lisk (another famous cryptocurrency firm) was able to sell its coins for around a value of $5 mio during the time of early 2016. However, amongst all of the given cryptocurrencies, Ethereum is the one which has been sold for the highest value of crowdfunding via ICO. During mid 2014, the Ethereum Foundation was able to sell ETH against 0.0005 bitcoin each. By doing this, the company received as much as $20 mio. This has been the highest value of crowdfunding ever that has been received through ICO.
Types of ICO Usages
When you deal with ICO (Initial Coin Offering), there are two main purposes of using this crowdfunding concept. These are:
Crypto Coins: This concept is concerned with the development of new coins which is different from the basic ones like Bitcoin and comes with its own unique set of features.
Crypto Equity: This concept follows the creation of a new project. For this project to work properly, a special cryptocurrency is needed. The equity for the same is raised through crowdfunding which is achieved through ICO. This allows the equity to be available for everyone.
Later on, the equity that has been bought can be sold over any particular cryptocurrency exchange. This concept is similar to that of the startups. As such, the investors can invest in the given idea in the hope of getting some profits over the same. A crypto equity is equivalent to a crypto token.
How to Pick the Right ICO (Initial Coin Offering)
Are you looking forward to invest in some ICO services? If you are intrigued by the concept of ICO, then you can invest in the same to expect some high-end profits out of the same. However, to maximize the chances of earning profits & reducing risks, you need to pick the right ICO service provider. As per our ICO experts, you can check out the best options on sites like Ico List King and Crypto Coin Judge.These sites will help you out in the best possible manner towards maximizing your profits with cryptocurrency trading.
Before investing in any ICO, it is important to check the offerings or services offered by the given company. You might also want to check the product development cycle of the company and how it wishes to raise the crowdfund through its ICO. One of the major problems faced by the companies is overfunding. There are times when there is no practical logic behind the amount of fund being raised. Some of the companies are simply raising whatever they can, without having a proper plan of the overall use of the given proceeds. Therefore, you must be cautious enough to be aware of such a scenario.
By analyzing who is behind the ICO along with its management team, you can bring yourself to a much safer end. The knowledge of who all are involved in the ICO of a particular company is the fundamental right of the investor protection. To be on the safer side of ICO investing, you must look out for the following:
Offerings that have been issued within a given regulatory framework
Tokens that have been backed by securities, and not utility functions
ICOs issued through some broker-dealers
When you are aware of these investing parameters, you can take the best possible decision with respect to ICO investing and earning maximum profits.
Maximize Your Profits with the Best ICO Sites
If you are looking forward to do effective ICO investing and gain maximum profits over the same, then you need to access the most reliable options out there. As such, Crypto Coin Judge and Ico List King are the best ICO sites out there wherein you can get ample information about the most profitable ICO offerings in the market.
Let us unravel these leading ICO sites in a detailed manner for your ease:
Crypto Coin Judge: This is a famous cryptocurrency trading and ICO site that offers tons of valuable information to the naïve traders. If you are new to the cryptocurrency trading industry and wish to know about the same in detail, then you can visit Crypto Coin Judge to get an in-depth idea of the cryptocurrency trading. This site offers the traders with accurate comparisons as well as detailed reviews of some of the top cryptocurrency brokers out there. Whether you are a beginner or a pro at cryptocurrency trading, you can learn about the most reliable cryptocurrency trading platforms out there on this site.
Crypto Coin Judge is a highly reliable online platform that aims at keeping the traders well-informed about the recent trends in the cryptocurrency trading industry. In addition to this, it also helps the traders with the latest ICO trading. Being a free and highly accessible service to the traders, Crypto Coin Judge is your one-stop destination when you need to know anything related to cryptocurrency or ICO trading.
On Crypto Coin Judge, you can find a myriad of information with respect to cryptocurrency trading. When you visit the Crypto Coin Judge, you can find the following information at your disposal:
Latest news & articles with respect to cryptocurrency trading industry
List & full-length, 100% genuine reviews of the different cryptocurrency brokers & trading platforms
Effective trading guide for the beginners as well as professional traders
Bitcoin casinos lists and reviews
ICO offerings and the best ways to earn maximum profits through the same
Visit Crypto Coin Judge now to ensure your success at ICO trading!
ICO List King: This is another famous name in the field of the best ICO service providers out there. If you are planning to do ICO investing, then you must visit Ico List King to get an in-depth idea about the best possible options out there and how to maximize your profits with the same. ICO List King is a leading cryptocurrency informative website that unveils the list of the best and the most lucrative ICO offerings that are available for the traders. Being a trader, you can visit this site to get an idea about the best trading solutions and how to invest in a given ICO to earn maximum profits.
With ICO List King, you can collect all the highly profitable ICOs for yourself in an effective manner. Through a detailed comparison and review of the different ICO offerings out there, this site lets you choose the best one out of several options available out there. Visit Ico List King now to maximize your ICO profits!