ICO [Initial Coin Offering]
ICO stands for Initial coin offering or initial currency offering and this is a type of funding using cryptocurrencies. This ICO format is a very common and used by most of the crowdfunding processes. In an ICO, the quality of cryptocurrency is solid and it’s a combination of both Bitcoin & Ethereum and sold in the form of token. These tokens sold as the future functional form of currency or when the funding goal of ICO met at some point the project launches.
ICO can be used as a source of capital for startup companies and this allows startups to avoid regular compliance and intermediaries like venture capitalists, Stock exchange and Banks. ICO may fall out of existing regulations, depends on the nature of that particular project, or sometimes be banned altogether jurisdictions, as China and South Korea.
ICOs have been prone to scams and out of securities law violations. Some of than half of all ICOs survive after four months of the offering, while almost 50% of ICOs sold in 2017 but failed in February 2018. Despite the record of failure and down prices of cryptocurrencies, a record $7 billion was raised via ICO from January – June 2018.
The First ICO was in the year 2013 and then Ethereum raised money with the ICO Form of Funding in 2014, raised up to 3,700 BTC in its first 12 hours, which was equal to approximately $2.3 million at the time.
Crowdfunding is the best way for people, business startups and charities to raise money. It works by individuals as well as organizations who invest in (or donate to) crowdfunding projects in return for a potential profit or reward system. This way of investing can be risky, so you should make sure what you are doing.
How one can get started with crowdfunding
1. Pick up your project idea and a crowdfunding campaign which needs to be very specific, with a clear outcome.
2. Write down your budget and set a realistic funding target. Because you need to be clear about the amount of money you need and where it is going.
3. Prepare your pitch for the project launch.
4. Start your campaign.
5. Keep in touch.
There are some different crowdfunding sites out there, so you can start applying by just opting one of them.
As we all know that Blockchain was just started in the year 2016 and so as this ICO concept is, which is a perfect example of cryptocurrencies such as Ethereum & Bitcoin. Things are growing very rapidly so the market criteria and the way startups start.
All these aspects current market scenario of investment and the crowdfunding pattern for starting a startup is also growing so fast. Though there is some market risks involve but where ever the term investment comes risk is always there.
So here we can conclude that ICOs is the only new way of crowdfunding for your startups.