Cointelegram share fact on ICO first launch on mastercoin....
You know that "it is your understanding that determine your stand" by samest
Cointelegraph review what ICO means and also educate the community on some salient fact about ICO.
boldWhat does ICO means?
An ICO is a recently emerged concept of crowdfunding projects in the cryptocurrency and Blockchain industries.
ICO stands for Initial Coin Offering. It’s an event, sometimes referred to as ‘crowdsale’, when a company releases its own cryptocurrency with a purpose of funding. It usually releases a certain number of crypto-tokens and then sells those tokens to its intended audience, most commonly in exchange for Bitcoins, but it can be fiat money as well.
As a result, the company gets the capital to fund the product development and the audience members get their crypto tokens’ shares. Plus, they have complete ownership of these shares.
The first ever ICO project was mastercoin..
This is the little explanation on mastercoin.
It managed to secure $5 mln worth of Bitcoins in 2013 selling their own tokens. Many other companies followed the example, like Ethereum in 2014, or Waves in 2016, raising over $18 mln and $16 mln correspondingly.
ICO is a proven and efficient way of kickstarting crypto projects, provided that the product is in demand and there’s a solid team working.
From experience there is parallel lines between ICO and IPO this is the information cointelegram draft out.....
There are indeed some parallels between the concepts of Initial Public Offering and ICO. However, there are several key differences.
For one, a company’s shares, released during an IPO, always denote a share of ownership in the respective company. This is not, by default, a case with crypto-tokens that are sold to the public in an ICO. Crypto-tokens can be used to transfer voting powers - a larger share of tokens giving more voting power - in some projects, but more often those tokens are just that - units of currency that you can send to other users and exchange for other currencies.
The other crucial difference is that IPO’s are heavily regulated by the government. This requires a partaking company to prepare large amounts of paperwork before releasing its shares. It also implies severe consequences in the case of non-compliance. Conversely, cryptocurrency crowdfunding is a new scene, largely untouched by government regulation. That means that any project can launch an ICO at any time with little preparation and any person can take part in it and contribute their money, no matter what country they are from. This liberal environment carries both new opportunities and risks when compared to the more conservative IPO’s.
There are more to ICO and IPO real investor are making cool money if you get the understanding behind it you make cool moola