By far and large, ICOs have received a lot of press and as such there is a rush all over with many wanting to know more about them. If at all this is your case, then it is good enough for you to be on this page. Here is a breakdown on some of the basic essentials of ICOs that would be beneficial for beginners.
So what are ICOs? In the normal stock exchanges, we all know of the IPOs, or otherwise known as Initial Public Offerings. IPOs are where the corporate bodies, companies get to sell their stocks for the need to raise capital. This is more of the same thing that happens to the ICOs. ICOs are basically Initial Coin Offerings.
Given the coming in of the blockchain technology, people can actually make easy and safe transactions without necessarily calling for third parties or intermediaries. This technology, the blockchain technology, has actually come in a panacea to the need for digital trust. Given this technology, we have as such seen a number of the technology startups turning to it for the need to raise funds from all over the world. By and large, this is a great step and an exciting development in the crowdfunding projects as they mean that people can invest in the startups and upcoming businesses with the least of limitations. Know the ico definition here!
For the majority of the startups that do the initial coin offerings, they will accept cryptocurrencies in place for the token sales. The tokens basically stand in the place of your shares, technically though not legally, and as a matter of fact investors invest in them for the hope of making some profits in them in the future. This is with the hope that the prices for these tokens will go up.
There has been so much hype in the ICO deals over the past for the fact that there have been seen a number who actually have made such a fortune out of them over the recent past. Read on and see more on how the ICOs work.
By and large, an ICO of any kind will have its genesis with an idea. This is where a startup comes up with an idea for a blockchain and then have this floated to the blockchain community. If this finds traction, they will go ahead and make the steps to advance the idea to see how well it moves. Check out some more facts about cryptocurrency at http://www.huffingtonpost.com/news/foreign-exchange/.