What Is an ICO and How Does It Work?

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ICO has proven to be a revolutionary way for many businesses and projects to raise money. We can say that ICO is the mixture of conventional methods and advanced techniques. The main thing to consider here is that investors investing in the ICO will be risk-free because of the technology used.

Until now, most of the OIC funds have been collected via Bitcoins (BTC) or Ether (ETH). When running the OIC, the project generates a Bitcoin or Ethereum address intended to receive funds and then displays it on the corresponding web page. The procedure is the same as opening a bank account and then presenting it on a given web page to people so that they can send money.

The initial offer of coins (ICO) is fundamentally an illegal way of collecting crowdfunding via various cryptocurrencies (fiduciary currencies in a few cases) and is used by cryptocurrency organizations to obtain the necessary funds to the execution of the project. In an ICO, a particular part of the recently issued cryptocurrency is sold to investors in exchange for a legalized tender or any other cryptocurrency. It can be said that symbolic selling or mass selling involves taking the amount of investors' investments and providing them with certain characteristics associated with the project to be launched.

The IPO, which is the initial public offering, is a kind of ICO-like process in which investors receive shares of the company's property. Once at ICO, investors buy parts of the company whose value may increase if the activity develops.

The first sale of chips, namely an ICO, was conducted by Mastercoin in July 2013. Ethereum collected money through an ICO in 2014. ICO has adopted a completely new definition in recent years. years. In May 2017, there was approx. 20 deals, as well as a recent internet browser, the OIC Brave generated about 35 million dollars in just 30 seconds. Until the end of August 2017, 89 ICO parts sales totaling $ 1.1 billion had been made as of January 2017.

Investors send Bitcoin, Ethereum or any other cryptocurrency to the specified address and then get new chips in exchange that can be very useful to them if the project is hit.

  • ICO is mainly designed for cryptocurrency projects based on a decentralized technique. It goes without saying that such projects would only concern investors who are keenly interested in the concept of cryptocurrency and respectful of the technology used.
  • The document that belongs to an investor remains in effect in the form of a web page, a white paper or a web message. Some of these documents contain exact details about the project, that is, one that literally simulates its functionality to mislead the interested parties. Therefore, before you rely on a white paper or an electronic document, it is better to carry out a quality control.


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