ICO is Initial Coin Offering. In
simpler words, suppose you had an idea to streamline the payment in your
company which provides fruits to people in order to make it digital and
encrypted. Now, you need people to give you money so you can make currency out
of it let's call it Fruit Coins. You could go to the bank or the investors but
what if you did it without giving any of your ownership of your company? That’s
where ICO comes in. ICOs are just a natural extension of the models of
cryptocurrencies and crowdfunding. Through ICOs, blockchain startups share a
piece of their new cryptocurrencies or crypto-tokens (in this case Fruit Coins)
to new concept supporters in change for their investment. These stocks
accumulated through the ICO act like crowd-funded seed capital for start-ups to
develop markets and promote their proof-of-concept (POC) and/or product.
Codezeros has been studying the
technology of blockchain for a while and has the following insights about ICOs.
ICOs are relatively quick and can cater to everyone from all around the world.
The only limit here would be the strength of your market. ICOs generally do not
require you to give up any equity and apart from funding but instead the people
who buy your token automatically become the customer of your services or
products. The trick is to break down the jargon so people understand what you
stand for. Actively answering questions about your idea will let people know
that you are serious and you really care about the investors.
When something unique is created or
introduced, it has its own difficulties and shortcomings. This is natural for
any new business that ultimately undergoes many repetitions for its
improvement. To maximize the chance of a successful launch, here is a tip from a
business leader whose company is at the cutting edge of cryptocurrency
innovation. Arshad Hisham, CEO of Magnus says, “Think through your play from
the beginning to the end before you send the first tweet or blog post out.
There are enough completed ICOs now that you can use as case studies so you’ll
be able to factor every contingency into your plan.”
In the end, we would like to conclude
that ICOs are an excellent way of generating initial seed capital for a startup
or a business anywhere in the world. There are no two opinions about the fact
that ICOs will become more mature and secure with the implementations of proper
regulations and the underlying technology behind ICO, blockchain technology, is
here to stay.
We hope you found this article interesting and informative. If you still have any queries, you can contact us or directly send a mail to hello@codezeros.com for further inquiries regarding ICO development and share your ideas with us. Let’s get together and create a better future together.
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