Saturday, December 9, 2017

What Is Icos And What Is The Actual Need For Them?

By Alex D White


It has been around 9 years when the first of the cryptocurrencies was introduced to the world. As soon as people got to know about Bitcoins, they were attracted towards it as it completely changed the way people referred to currency. The introduction of Bitcoins was beneficial for the once that had a computer and internet connection, as these individuals started mining.

ICOs is definitely the modern day trend, the term has definitely become very popular as soon as the Bitcoins, one of the most popular cryptocurrency saw a huge leap in its value and reached to more than around 11000$. As this happened, people started to invest more on digital currencies in the greed of making profits in the long term adhering to the process of Bitcoins. Likewise, there were companies that introduced their own digital currencies as they saw a huge market for them, this can be considered as a crowd funding strategy.

The use of the term ICO has increased over the years; it gained popularity in the recent time, especially by the time when countries like China issued a ban over the use of cryptocurrency. Now for the individuals that are new to the term ICO and are not aware of the profit that it has to offer. Initial coin offering is a process that most companies implement to increase their capital by making use of the cryptocurrencies.

ICOs are the basic part of the fundraising function with the help of digital currencies. The though behind giving ICOs, is similar to what IPOs or initial public offerings had to offer. Company giving out IPOs, offered ownership of the company in exchange of the investment that buyers made.

Initial coin offerings is a simple process where the company offers the buyer to get tokens to purchase new cryptocurrencies, by following a payment or exchange system of using different cryptocurrencies. Likewise, every time there is a new ICOs being released in the market, the company offers the public to purchase it by exchanging them with cryptocurrencies such as Bitcoin or Ethereum.

ICOs also benefit the founders, simply because it allows the company to earn the capital investment needed. Also, the company is in no debt to any of their investors and there is no risk of diluting the ownership of any of the delegates. But they have around thousands of people that are willing to invest on their company and want it to be a success.

In the current situation, people from INDIA and U.S. have become one among the most prominent investors on the ICOS. There are more and more people looking to invest in organisations or companies that want to invest in blockchain technology.

As far as ICOs are concerned there is a very faint line between whether or not they are going to be profitable in the future. Although there are several talks going on around the investments made on ICOs, there are still a lot of individuals that get attracted towards them.




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