More activity seems to have kicked off online regarding the investing and sale of digital coins and other cryptocurrencies. Leading financial bodies have begun scrutinizing this financial services and securities market. Bitcoins just like other virtual currencies are strong underlying blockchain processes which underlie their transactions. This brings about a whole new wave of questions and concerns regarding their use. Notwithstanding the fact that it is frowned upon by most financial regulatory bodies, bitcoin remains very popular among the cryptocurrency community. Find more information at https://www.arcanebear.com/services/advertising/.
Before going into the merits and demerits of initial coin offerings, one must get a rough deal on what ICOs really are. Initial coin offerings can be likened to a communal peer-to-peer sale. The funds are then paid through Bitcoin or Ethereum. Investors will then receive tokens which can be used as currency or give the holders a certain amount of power within this project. Statistics from the cryptocurrency world reveal that over the last two years an excess of $331 million has been raised through venture capital investments.
What are some of the fine examples of ICOs
Regarded as the second biggest cryptocurrency in market capitalization, Ethereum ICO has raised an incredible amount of funds through such fundraisers. It took only three months for this Ethereum ICO to raise over $18 million. Today, it remains one of the most powerful and innovative cryptocurrencies worldwide. Briefly described are some of the pros of initial coin offerings
Fund promising initiatives and projects
First, they are vital for projects that result into incredible future opportunities. Looking back at the last 12 months we can vividly see what cryptocurrencies have been able to achieve, particularly Ethereum. It is not only the second most powerful global cryptocurrency, it also remains a platform where DAPP creators run their projects. It has even been touted to be the platform on which the future will be built on.
Secondly, with cryptocurrency, there are no inconveniences of paperwork or unnecessary red tape. Raising funds through crowdfunding or IPOs forces project developers to go through vigorous documentation. All an ICO needs is a white paper which contains all your project details. This is what investors will look at when gauging whether to invest further or not.
Promote community building
Project creators will build a community around their respective projects. These health communities will give the product a lot of credibility. In addition, member of this community will have the real say in the direction of such projects while keeping your creators accountable.
ICOs are the perfect platform to give your projects a lot of exposure. The hype surrounding such ICOs will make more potential investors hear about the project. This then works to the advantage of the project developers as they will raise more money for their project.
Access to tokens
Some of this tokens have the potential of becoming highly valuable cryptocurrencies down the road. For instance, during the ether sale, one cost 35 to 40 cents, now it costs over 400 dollars.