What is a Reverse ICO?

in #bitcoin3 years ago

Things are fast moving in the crypto world. New terms are popping up all time. It’s worth checking them out to see what new trends are emerging.

Recently I’ve been hearing a lot about reverse ICOs. That seems interesting, so let’s check out what they are.

Reverse ICOs are a tool for existing, established businesses to raise funds and get into cryptocurrency. These are companies with existing products and services and have real customers.

It’s a regular ICO. The reverse part is changing the business model from centralized and fiat based to decentralized and cryptocurrency based.

The benefits are two-fold. By doing an ICO you can raise more funds which can be used to revamp and expand the business. And you can also decentralize your infrastructure with a cryptocurrency. That puts the company in a better position to be part of the new token economy.

One previous example is Kik, the social media app with 300 million users and 15 million active users. It was able to raise $98 million in its ICO last year. Only time will tell if the reverse ICO worked out, but so far so good.

Then there’s Telegram which has raised an astonishing $850 million already.

And recently Kakao, a very popular messaging app in South Korea, is preparing to do its own reverse ICO.

So far the reverse ICOs are working. I expect we’ll see more in the future.

For more on cryptos follow me @g-dubs and on SteemFollower

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Thanks for the share. I never heard of that term before.

You got it!

Actually, You help me a lot specially because I work in that field of currency .Thank you so much.

No problem!

Great article analysis about Reverse ICO...@g-dubs... I appreciate your informative post...i will added some little thing that reverse ICOs is existing businesses realize the best way for them to compete is by decentralizing themselves.

If you can't beat them join them right ;-p

wow very nice post

Very important post....Many of us are astounded by the staggering amount of money generated by Initial Coin Offerings (ICOs). In July alone, over $500 million was raised, bringing the all-time total to over $1.6 billion. That does not even include the August figure where FileCoin is closing in on $200 million by itself......

I read $14.2b raised since 2014... wow!
The reverse ICOs are raising some of the biggest amounts too.

I guess by Q2 of this year regulations will take place and then the ICO bubble may disappear, however you info was good, I had no idea on this earlier...

I think we'll see more private sales + airdrops and reverse ICOs.

Great article @d-dubs
Today I learned new thing reverse ICO

wow very nice your great post

This post has received a 1.48 % upvote from @booster thanks to: @g-dubs.

Interesting. I wonder if the term came from "reverse takeover," a term that matches well to "reverse ICO." "Reverse Takeover" has been around for decades.

great sir @g-dubs thanks for shareing

You think BTC or ETH are advertised to replace future currency? But I see #Nexty seems to outperform XRP in terms of speed and transaction fees.
I think nexty will grow very strong. #blockchain #eth

very analytic post sir. thanks for sharing with us.

This post has received a 5.03 % upvote from @boomerang.

Something new to my knowledge, Thanks for contribution :)

Thanks for sharing the knowledge! This one is new to me. Although I've been reading in the news about established companies announcing ICOs, I didn't know it was called reverse ICO. I learned something new today!

Amazing to know about reverse ico,thank you so much sir.

it's more informative writing about currency.
thanks for sharing & keep it up.

ico no decrease so far

Wow!great post

Hello! Good article! I'm interested in the them of ICO and crypto-currency, I'll subscribe to your channel. I hope you will also like my content and reviews of the most profitable bounties and ICO, subscribe to me @mileplatform
There will be a lot of interesting!

Bittrace Has Started Its Airdrop, Please Register And Earn 15 Free Tokens.i.jpg

really very informative post @g-dubs sir

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