What is ICO crypto

The Initial Coin Offerings term stands for a fundraising venture that is held by blockchain developers to gain support and following of larger public.

What is ICO cryptocurrency: purposes

Coins and tokens greatly simplify the process of selling company “shares”: a token itself can be seen as a share. Both individuals and legal entities can issue a token if they have something to offer the society. If their cause is worthy indeed, more people will seek to buy their token. The rise of demand will cause the rise of price, and all token holders will profit.

If people believe that there is some value behind an asset, they will buy it just for the sake of owning it. Although it is enough to relate a coin to a meme (think of SHIB or DOGE), more commonly, coins and tokens have a utility. For example, I could issue a TREE token and plant a tree for 50 TREE, with a video proof. I could offer coaching services for fiat money and the holders of my COUCH token would receive a lifetime discount. There are endless ways to play with tokenomics.

So, to reiterate: what is ICO point cryptocurrency? To set a business on track.

What is ICO cryptocurrency: outcomes

A person or team behind the offerings usually informs the public about exact percentages of coins that will be sold. A coin distribution may look like this:

• Advisors 5%
• Community 5%
• Foundation 10%
• Private Sale 21%
• Public Sale 3%
• Team 15%
• Seed Sale 11%
• Liquidity 15%
• Licensing & Partnerships 15%

After the ICO sale, the team should have enough time to gradually improve and release their product. To properly introduce the said product to the public, the team comes up with a whitepaper, launches a marketing campaign, and so on. This is where you have to be careful because brilliant marketing alone does not guarantee long-term success of the venture.

What is ICO in cryptocurrency: indicators of trustworthiness

Another question is whether or not you should participate in the ICO of a certain coin. If you are driven primarily by financial concerns (rather than the desire to support a meaningful product or idea) then the following must be of utmost interest to you:

• Whitepaper;
• Media coverage and impressions;
• Team members of the project;
• Friend’s and expert’s opinions;
• Roadmap and achievements.

Take all the information about the project and carefully analyze it. It goes without saying that at least some basic cryptocurrency-related experience is required. Failure to estimate the viability of a certain coin may result in a total loss of investment: it happened before with OneCoin and BitConnect coins that turned out nothing else but Ponzi schemes.

What is ICO in cryptocurrency: what else is in it for you

If tokens are comparable to company shares then you can launch your own company simply issuing some on one of the available blockchains. Although you don’t have to register a legal entity to do that, every decent blockchain has a basic verification procedure to sieve out possible scams. Yes, it will likely involve whitepaper presentation and giving away some personal data.

Those with software development skills may enhance their coin with scripts: regulate the price, set up token burning rates, etc.

Keep an eye on your country’s legislation concerning cryptocurrencies. An attempt to launch a coin for Telegram messenger cost Pavel Durov $18.5 million penalty after the SEC intervened, although most coins went on without ruinous legal troubles worldwide.

What is ICO token cryptocurrency

Although the name implies that a developer team distributes a brand new coin, in a number of cases, the team sells a token issued on an existing blockchain (e.g., like Enjin, on Ethereum).

Therefore, if you type something like, ‘what is ICO token cryptocurrency’, into the search bar, you end up comparing the difference between coins and tokens, and there is not much, for the practical purposes: if you are investing in it, the quality of a project behind the digital asset is all that matters.

As we wrote above, there are numerous ways how tokens and coins can be put to action: if goods and services cannot be bought for them directly, they may transform into non-fungible tokens, provide bonuses for staking, etc.

What is ICO over mean in cryptocurrency

What should you do if the Initial Coin Offerings of an asset you are interested in ended a long time ago? Watch out for airdrop announcements, participate in the community-held events, or just trade! Besides that, you could monitor the upcoming ICO’s on CoinMarketCap.

So, don’t fall into despair, hastily typing, ‘what is ICO over mean in cryptocurrency’, on your laptop. There will be plenty of opportunities to support awesome projects.

What is ICO cryptocurrency

Participating in the coin offerings is a great way to increase one’s financial literacy. As your experience (and portfolio) grows, you become more and more efficient in financial decisions.

Lots of successful businesspeople started from scratch, so starting your journey from a simple query “what is ICO crypto” may be the foundation of your journey to prosperity.

Come back to us every time you want to top up your crypto balance!