What is the ICO that we often hear together with the crypto money sector? With a simple narrative, we can elaborate the ICO concept and explain a language that even our readers, who have no detailed knowledge about the industry, can easily understand.
ICO is used as an acronym (Initial Coin Offering). If we think of Coin as a digital money, virtual money, we can open the ICO as a "start-up offer". How does the ICO process work?
Let's say you have a new business idea. It's business idea, Blockchain and - or, get crypto-based. But do not think you have enough capital to put all these processes into action, even though you have a very good idea to set up a business, your business plan, your growth plan, and so on.
At the same time, if you are going to trade a classic, you all know what you need to do, you have to have one or more investor partners in it.
This is exactly what the ICOs have to say. To be able to collect the necessary investment for a new project to start ...
Once an ICO has prepared its entire sub-structure, it shares information, including social media and news channels, including the objective of the project, the problem it solved, the goal, the roadmap, when to start investing, the investment process, investment figures and net details such as the start date of the project.
Unlike traditional investment projects, ICOs are the most effective and easiest investment process for investing anywhere in the world.
ICOs can sometimes be single-stage, sometimes two-stage. Some ICOs can take partnerships with their projects, demanding large investments for the development of the project in the first instance. In the second phase, "Token", which offers opportunity to all users with a few dollars capital, goes on sale.
Let's say we have an ICO progeny named X. For the sake of simplicity, shrink the digits and get 100,000 crypto dollars (x coin)
Since you do not have a chance to sell items for an x-coin that is not yet a value, let's sell tokens that represent each x-coin. Let's set the ICO first token sales period to 1 week. With this 1 week Blockchain technology, we will sell 200,000 tokens with smart contracts. In this case, an investor who bought 100 tokens after ICO token sale, will be transferred to the account of those investors with the help of 1/2 x coin, blockchain.
If you have a hundred thousand coins and a hundred thousand tokens have been sold, then 1/1 coin will be sent, and if 50 thousand tokens are sold, 2/1 coins will be sent to each investor's account.
In this case, the ICO project invests in the investment fund needed for the development of the business, and investors invest in the future of a project they really believe in.
On the other hand, investors can generate profits when their investment in coin goes up to x coin value increase. One advantage of investing in ICO projects is that there are usually a few percent discounts on token purchases. Like 100 bucks for 100 bucks, 125 bucks for ...