What is ICO or Initial coin offering?
ICO or Initial Coin Offering is the method by which new cryptocurrency developers make a considerable amount of money for the future development by the use of Token sale. It involves selling some amount of the new cryptocurrency or tokens in exchange for Bitcoin, Ethereum or any supported cryptocurrency.
Millions Within Days!
The aim of ICOs is to collect a huge sum of money within a matter of weeks. Lately, the method has been so successful that every new cryptocurrency launches after an ICO. Normally the developers will share their roadmap before they launch the ICO. This way people will get to know what they are paying for. Hence it is the perfect crowdfunding alternative.
The great advantage of ICOs is that the investors are getting token for a very low price that they can later sell or trade for high profit, provided the cryptocurrency platform blooms.
The origin of ICO can be traced back to ripple where they put a million mastercoins for sale and raised 1 million US dollar. The token will have static pricing meaning every token will have the same price from the first token to the last.
The Future Of Crowdfunding
ICOs are proving to be so effective that now almost all the latest cryptos are hosting ICO before entering the market.
We will list out a few ICOs held in the past by well-known cryptos to show you how efficient and effective ICOs can be:
The NXT or Next coin is a type of decentralized exchange where you can easily exchange cryptocurrencies. The NXT ICO was held for 20 days from 28th September 2013 to 18th November 2013. The platform sold 1 billion tokens raising 14 Bitcoins.
Ethereum is a platform based on smart contacts. The platform saw huge success after its launch as it currently stands as second in the overall market cap, only second to bitcoin. The Ethereum ICO spanned form 20th July 2014 to September 2nd, 2014. In this brief time interval, Ethereum managed to gain 18,439,086 US Dollars by distributing 60 million tokens.
Stratis is a relatively new platform that uses an innovative blockchain innovation called Blockchain as a Service or BaaS. The platform provides its BaaS capabilities to organizations looking to implement blockchain capabilities in their company but doesn’t have the proper resources. The ICO of Stratis was held from 21st June 2016 to July 26th, 2016. The platform distributed 84 million Stratis tokens (STRAT) for 598,685.5 US Dollars.
The examples present the practicality that an ICO has in boosting the initial development and success of the cryptocurrency platform.