Cryptocurrency like always has been popular this year as well. In fact, everyone loves talking about it. So many cryptocurrencies are already out there in the market like Bitcoin and Ethereum, and new coins like FantasyGold are presently making their entry into the market. Currently, around 1586 cryptocurrencies are listed online.
Blockchain technology is the main reason behind the existence of so many cryptocurrencies. Developers leverage the technology of blockchain to bring into existence different cryptocurrencies that features varying functionalities.
As blockchain technology is decentralized and not controlled, almost anyone with the knowledge of blockchain technology can come and create their own cryptocurrency. What’s more, they can also invest in an initial coin offering.
Do you have a superb idea for a new cryptocurrency project?
If yes, the most important thing you are struggling for right now would be the initial capital/ money to start your cryptocurrency project. To acquire the capital, you have two options – either you get a loan from the bank, or you try to bag some investments from a venture capitalist. Nevertheless, if you would like to gather money without giving away the ownership of your future company, then your best option is ICO.
ICO is the abbreviated form of Initial Coin Offering. To put it short, ICO is simply a fundraising mechanism. It means that if you wish to raise capital for your project, you sell your underlying crypto tokens in exchange for bitcoin or ether. ICO is more or less similar to IPO where a company’s share is put up for sale and investors purchase it.
Leveraging ICO, startups can cut down on the cost for regulatory compliance and intermediaries like banks, venture capitalists, and stocks.
What are the benefits?
And the drawbacks?
The success of your ICO project mainly depends on two factors – how unique is your product and what problems does it solve? Getting these points to the audience through effective ICO marketing will remarkably promote your project. So, if these points are taken care of efficiently, there will be nothing can stop your project from achieving success.