Initial Coin Offering (ICO) Development Company
Initial Coin Offering (ICO) is just like IPO (Initial Public Offer) where the company sells their shares to get the fund to expand their company or business. So, ICO is a just similar way to get an investor to get fund by selling cryptocurrency. In this, the company don’t sell share but sell coin as Bitcoin, Ethereum and much more that are running in the market at present. ICO is Trending in the digital market a lot due to its value and rapidly increasing prices. It has become most profit providing digital currency and when a person buys crypto coin that they hope to get at least double amount.
Working Process of ICO (Initial Coin Offering)?
Basically, ICO is dealing with cryptocurrency Development Company and for that, they make a business plan like how their currency will work and how they will get profit from it. So for this, they make project overview, the purpose of a project, and Total amount of money that is going to raise, Total time of the campaign, the overall process is followed by digital currency Development Company. When Champaign starts, the company offers token (crypto coins) and interested people buy them. If we compare it with IPO then company shares and tokens are the same things. People buy both for getting profit from it. At the end, company check their fund and if they meet with their target fund then they start to work on their purpose and if they don’t meet then raised money give back to people. So, this type ICO works and it has become best medium to raise fund for the crypto company.
We can well understand it with a project that is called Etherum and it was started in 2014. It raised 18 $ million by .40$ per token and in 2016, it values become 14$ per token. So, we can imagine the profit. If any firm can convince people to buy their currency then they can raise money by digital tokens. By the help of the ICO (Initial coin offering), we can easily reach out to an investor in short time period. The main question arises there that who will buy there coin then it is totally like share market and for selling your tokens you have to show trust so, people can do trust you.