The term ICO marketing is a popular term, it is also known as ‘token sale’. But the growth of ICO market has been very fast in recent years and it has become a new path for blockchain based start-ups. The initial coin offering (ICO) is a sale of a predefined number of crypto tokens to the public for a limited time, usually in exchange for Bitcoin, Ether or any other automated trading robot.
Initial Coin Offering Basics
At the point when a digital currency start-up firm needs to fund-raise through an ICO, it make a plan on a white paper which states what is the project, what are the requirements needed for the completion of project, how much cash is needed for running project, what sort of cash is acknowledged, how long this campaign will run. During this campaign period, the ICO firm supporters buy some distributed crypto coins using the traditional currencies. In ICO transaction, these crypto coins are considered as tokens and are as similar to shares of a company. If the money raised by such a method doesn’t fulfill the fund requirements of the firm, the ICO considered as unsuccessful and money is returned to the backers. If the money is raised is met the fund requirements in a specified time, then that money is used to complete the scheme.
What are the Major Advantages of ICO?
- It is the successful method for blockchain based activities.
- It removes the difficulties present in equity capital fundraising
- It helps to find out finance without diluting equity.
- It allows making an eco-system setup
- It helps to make a fairly talented team very quickly.
Where you can Find ICO?
Before investing in the ICOs, the investor should familiarize the cryptocurrency market in detail. In ICOs the investor needs to have a cryptocurrency wallet set up as well as digital token holdings. The ICO investing model needs to follow some steps. Sometimes the steps may be different according to the type of ICO.
- Sign up for any digital currency exchange.
- Gather the cash you will require so as to buy into the ICO.
- Transfer to a digital wallet which supports the holdings. For example, your wallet must hold Bitcoin for that ICO requires payments in Bitcoin.
- Go through the terms and condition in detail which displayed in the official page for ICO. After a thorough reading, look for ‘participate now’ or ‘enter the token sale’ button.
- Provide necessary information and register the ICO buy using public wallet address.
- Follow the instructions in the site on the launch day for buying ICO and it is advisable to keep some original tokens in reserve to pay the small fees associated with transferring of cryptocurrencies.
- Then you will receive a new token in the wallet in which you send and receive transfers.
- You can hold or exchange the new token for other digital currencies.