Token sales in ICO
Initial Coin Offerings (ICOs) are a technique of raising funds like an Initial Public Offering in the share market. Token sales is a tremendous tool for startups and for companies interested in raising funds. This system provides a decentralized and inclusive alternative to traditional fundraising methods.
ICOs provide entrepreneurs with access to a global pool of investors. This is not only providing funds for new projects but also for investors because they can get better opportunities for investment. Crypto-based projects are collecting funds for the project in this method. It can be treated as an avenue for projects to raise capital and develop their products or services.
ICOs are basically a fundraising mechanism in which companies issue digital tokens. ICO is different from IPO because ICOs are typically based on blockchain technology. New offered coins are sold through established cryptocurrencies like Bitcoin or Ethereum or traditional fiat currencies. These tokens often serve as units of value within the project's system and can have various utilities.
ICOs provide an opportunity for projects to access global investors. Funds can be raised from any part of the World in this system which is impossible in traditional fundraising systems. This system is open for all as it is coin or crypto-based. Geographical boundary barriers are eliminated here. Any startup project can get support from a diverse pool of backers worldwide.
ICOs enable decentralized fundraising without the need for a middleman as it is based on blockchain. This approach allows startups to secure funding directly from interested stakeholders. It is a more inclusive fundraising environment.
Tokenization facilitates liquidity and enables the fractionalization of assets. It allows investors to buy and sell tokens on various crypto exchanges. This enhanced liquidity offers investors increased flexibility and the ability to diversify their investment portfolios more effectively.
~ Regards,
VEIGO (Community Mod)
One good thing about ICO that you have beautifully highlighted is the fact they enable decentralized fundraising without
having any need for a middleman since it's blockchain based.