ICO Meaning : Initial Coin Offerings (ICO)Definition
ICO means Initial Coin Offerings . It is blockchain version of a Peer to Peer crowd sale. ICO Is that medium which helps developer to launch the coin in the market. In that case the team which is working on that coin got profit by crowdfunding. In ICO both profit and loss happens. People Like us bought the tokens those who launch before the launching of coin by the developers and sell them after the launching of coin if the coin rates are high in that case they get profit otherwise they lost their money.
In ICO campaign, a percentage of the cryptocurrency is sold to early backers of project in exchange for legal tender usually for Bitcoin. The largest ICO by now was made by ETHEREUM. This foundation raised 31,500 Bitcoin.This event has become one of the biggest crowdfunding ever and the start of a widly successful cryptocurrency . For example Ethereum is the first that launched by ICO the people who bought Ethereum at that time they getting profite now million and billion. About 98 to 99 percent fake currency launched in ICO. In today’s generation ICO is spreading like viral. So be before investing your money in ICO.
image : Blockgeeks
ICO (Initial Coin Offerings ) and IPO (Initial Public Offerings)
ICOs are similar to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that are keen to invest in a new project much like a crowdfunding event.
But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the latter campaign are basically donations. For these reasons, ICOs are referred to as crowdsales.
Example of ICO:-
Token Name PROOF
Token Type Utility- token
Token Platform Ethereum, NEM
Token Price 100 PROOF= 1 USD
ICO Partner Cryptaur.com
Fund Rising Goal $5- 10 Mln
ICO Start Date 30.01.2018
ICO End Date 31.03.2018
When Did ICO started || History of ICO:-
ICOs and token sales became popular in 2017. There were at least 18 websites tracking ICOs
before mid-year in May, the ICO for a new web browser called Brave generated about $35
million in under 30 seconds. Messaging app developer Kik’s September 2017 ICO raised nearly
$100 million. In the year 2017 ICO conducted ten times more than year 2016.
It gives the project creators an opportunity to build a community around their projects and the
hype that surrounds an ICO can do wonders for the exposure of the project. The more the
exposure, the more the people will know about the project. This increases the number of
Attracts a lot of scammers: Because there is so little paperwork involved in ICOs it attracts many
scammers who can simply create a bogus white paper and make off with a lot of money. The
biggest consequence of all these scams is the decreased faith of the public in blockchain
technology which can potentially spell absolute disaster.
PROFIT AND LOSS in ICO:-
Many ICO has been a lucky choice for investors, ETH, For Example, was sold at 0.0005Bitcoin and is worthy today 0.05 BTC. Profit 10,000 percent , Augur Token (REP) were sold for around 0.005 each and are now traded at 0.01. The gain in value of 100 to 500 percent in Bitcoin is common for successful ICO.
On the other side, many ICO ends with losses. Cryptocurrencies like Lisk, IOTA-token or Omni did not hold the value in Bitcoin the token has been assessed at the ICO or struggle to keep it. Often ICO is even used by scammers and semi scammers. Build a glossy website , write some blocks of bullshitbingo, promise the greatest cyptocurrency ever and be happy if you receive just 500 or 100 Bitcoin.
Besides the large and successful ICO , like LISK, many small and shady ICO did collect funds and delivered nothing at all.
At last it can concluded that don’t waste your money without knowledge in ICO. So before the the investing our money ICO we have to take knowledge about all ICO cryptocurrencies. It is not difficult to search about ICO on the internet. After checking all documents and ICO results.
If there is anyone shows you any MLM plan then it is fake because anyone can’t holds the coin all the coins are available in the market. So be careful…