An ICO is an initial coin offering. This is very similar to when a company floats on the stock market. When a new cryptocurrency firm is starting up they sometimes need funding to complete the project, so this is where ICO’s come in.
Generally when a cryptocurrency firm start an ICO they will produce what is known as a ‘white paper’. This white paper generally contains the project plans including what the project will fulfill once the project is complete, how much funds are needed to complete each stage of the project, how long they expect each stage of the project to take to complete.
On the ICO launch generally public investors are expected to invest Crypto Currency into the project. In return the investors get ‘tokens’. These tokens are usually exchanged into the new cryptocurrency once the project is complete and the new cryptocurrency is live.
Investors are encouraged to invest in the hope that their investment is worth more later when it launches. Of course it isn’t worth much if it’s not accepted into one of the Crypto Exchanges, much like a Stock not being listed on the Stock Market. It has to be liquid to realise your profits.
For example in 2014 Ethereum used the ICO method and raised $18m in funds at a rate of 40c per Ether token. When Ethereum went live in 2015 the value of Ethereum was $14 per Ethereum. In 2017 Ethereum has been worth $370+ at its high points.
Possible reasons why some countries do not like ICO’s could be because it allows a cryptocurrency to jump straight in with value at the time of launch, this is due to money already heavily invested in the currency giving it value from the start. Also maybe because some ICO’s may never complete the project and you do risk your investment being lost. Some countries may
also think that cryptocurrencies weaken the value of their own local currency as people move money into cryptos. But there are probably more reasons why some countries may not adopt this new form of currency, but I think each country should embrace this new age with cryptocurrencies
rather than fight it.
Many ICO’s now offer up Bounties and Airdrops, these are rewards for doing simple tasks like Tweeting, Posting on Facebook, Making Video’s for Youtube and other forms of promotions.
There are so many, it’s hard to keep up, so here are a couple of resources to help you;
Bounty0x sign up with code be042b
The trustless global bounty platform enabling hosts to post bounties and hunters to complete them in return for big rewards.
AIRDROPS! In silent with patience we wait for a new crypto project to release their airdrop and diversify our crypto portofolio with more and more tokens.