Here are the answers to all your questions regarding what an initial coin offering (ICO) is within the world of cryptocurrency.
There’s a good chance that you’ve been wondering what is an initial coin offering (ICO) is. This is understandable, as learning the basics of the cryptocurrency market can take a bit of time. As one of the hottest markets in the cryptocurrency industry, it’s important to learn your way around ICOs.
We reported that if you invested in every visible ICO on the market right now, you’d make back over 13 times your original investment regardless of some of the problems plaguing ICOs. You might’ve heard some negative things about the ICO market. However, after learning the basics of ICOs, you’ll feel much more confident about getting involved in the market.
What is an Initial Coin Offering (ICO)?
An Initial Coin Offering (ICO) is a fundraising tool that allows new companies trying to establish themselves in the market to sell or trade future crypto coins for cryptocurrency tokens from Bitcoin, Ethereum, or other established crypto companies. On paper, it’s similar to an Initial Public Offering (IPO) where investors purchase shares of a company.
However, people buy and trade ICOs without gaining ownership rights. The important detail to take away is these exchanges of value are unregulated. People invest a great deal of money hoping to see quick and profitable returns. With the ICO market being unregulated, it allows companies and investors to raise a jaw-dropping amount of money very fast.
Last year, ICOs raised almost 4 billion dollars from investors. During the first six months of 2018, the market earned more than $12 billion, according to Coin Schedule. The growth of the market has obviously created plenty of intrigue for investors and established cryptocurrencies to get involved. More importantly, ICOs allow smaller crypto companies to gain funding at an incredible rate. Unfortunately, this is also one of the biggest problems.
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