Initial Coin Offering Development Company USA
ICO - Initial Coin Offering is a way to get the investor to get fund by selling cryptocurrency. In this procedure, companies don't sell share but they sell digital coins like Bitcoin, Ethereum etc...
An initial coin offering (ICO) or initial currency offering is just another type of funding that basically uses cryptocurrencies. ICO is also considered as an alternative form of crowdfunding that has emerged the outside of traditional financial system. This type of model has dramatically helped thousands of businesses and projects to get the funding required starting their business. In earlier 2013, over US$5.1 Billion were successfully raised via crowdfunding globally, which basically than increased US$16 Billion in 2014 and then it was estimated over to US$34 Billion in the late 2015.
In ICO cryptocurrency is sold in the shape of “tokens” (“coins”) to investors, in an exchange for the legal tender or other cryptocurrencies such as the recently most popular Bitcoin or Ethereum.
An ICO can be usually very helpful for startup companies. ICOs can allow any type of startup to avoid the legal regulatory compliance and the intermediaries such as the Banks and the stock exchange markets.
What really is ICO (Initial Coin Offering)?
Well, ICO is an abbreviation to Initial Coin Offering, which means that someone offers the investor some units of a new cryptocurrency or crypto-token in exchange against the cryptocurrencies such as the Bitcoin or Ethereum.
Ethereum – The Initial Coin Offering & ICO Crowdfunding Machine
One of the smartest and easiest ways to allow application of Ethereum’s smart contract system is to create a very simple and unique token that can be transacted on the Ethereum blockchain instead of Ether. This sort of contract which was then stardardized with ERC#20. So, then this made the Ethereum host of such a wide scope of an ICO that you can now safely say Ethereum found its Killer App as the distributed platform for crowd funding and fundraising.
This concept of funding project with the support of token on Ethereum became the blueprint for a very new and highly successful of the ever generation projects of crowdfunding. If you have already tried it out, you probably know that investing in token is now on the top of Ethereum is very easy: you can easily transfer ETCH, and then easily paste the contract in your wallet – and, tata: The token will now successfully appear into your account and that’s it, you are now fully independent to do anything with that transfer.
Some of the successful examples on Initial Coin Offering (ICO) on Ethereum’s Are
- Singular DTV
- First Blood
- Digix DAO
In fact, there are hundreds of thousand ICO every month which explores new and creative ways to easily connect with the application token and to easily smart contract to add more tremendous features to these tokens.
Is ICO Legal?
Well, the legal statement from ICO is not cleared defined, the answer might be yes or no, but I must let you know that it is currently very unclear to say anything. The tokens that are sold not as the financial asset but as digital goods like many other sort of things. This is why that ICO initial coin offering is called “crowd sale”.
However, in the future they are most likely to be regulated. This might bear some financial and legal risks for the investors. Also, the costs and the efforts to comply with the regulations that might reduce the advantages of an ICO which you is compared to the traditional means of funding.