Initial Coin Offering: What Do You Understand By It #002

jueco (76)modquality controllerin Steem Alliance • last year

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Hello great minds,

It is a wonderful opportunity to come before you all today to discuss on an issue of great importance in the cryptospace.

I trust you are doing perfectly fine and are enjoying your activities in the community as you promote steemit across various social media platforms.

Today, we shall continue our discussion on ICO which we started a week ago.

We understood ico to be an abbreviation for the term initial coin offering.
And Initial coin offering is understood to be a fund-raising program that is used by new cryptocurrency project to to raise capital.

And it involves the pre-sale of their newly created tokens to raise funds for their respective project.

Today, we shall be examining the benefits of ico, please join me as we embark on this journey.

BENEFITS OF ICO

There are several benefits if Initial coin offering in the cryptospace and we shall be examining them gradually.

ACCESS TO CAPITAL:

Access to capital is a very crucial benefit of ico.

Initial coin offering creates a tactical mechanism for project and startup to raise funds for their intended program.

Explained below are advantages of access to capital through ico

EFFICIENT AND QUICK FUND-RAISING

When compared to traditional funding methods, raising capital on ico is relatively quick and efficient.

The process associated with the lunching of an ico program is quick and less cumbersome, thus giving startups the opportunity to access funds promptly.

GLOBAL REACH

Ico has a global reach and this implies that they have the ability to attract investors from any part of the world.

This global appeal is made possible due to the nature of cryptocurrency which cannot be limited by geographical boundaries.

It gives new projects the opportunity to tap into a widespread and diverse pool of investors across the world.

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DEMOCRATIZED FUNDING

Fundraising process is usually democratised by Initial coin offering.

They make it possible for a broader range of people to invest in the project, not just institution or accredited investors.

And this inclusivity is in line with the decentralized ethics of blockchain technology.

REDUCED BARRIER TO ENTRY

Another advantage of access to capital of Initial coin offering is that it has low barriers to entries for it's investors.

In contrast to the traditional Investment methods that most times demand a substantial amount of capital, Initial coin offering allows for small investments, thus making them very accessible to retail investors.