What is an ICO ?
An ICO, or Token Sale, is an event in which a blockchain project sells a series of tokens to early adopters in exchange of legal tender or cryptocurrency.
There are currently more than 1,000 coins available on different exchanges.
Not every cryptocurrency has its own blockchain.
ERC-20 tokens, which represents a standard of interoperability within the Ethereum Blockchain. Ethereum is a general purpose blockchain where different tokens can be issued on top of its blockchain without creating their own infrastructure.
This means that the blockchain project offers to investors some units of a new cryptocurrency (their token) in exchange against cryptocurrencies such as bitcoin or ethereum.
ICO can be used for supporting development of the new cryptocurrency. Issued tokens can be traded easily if there is any demand for it.
Regardless of their nationality, anyone in the world can join blockchain projects through ICO because it is possible to invest with cryptocurrencies like bitcoin and ethereum instead of cash.
Typses of tokens
As said, during an ICO a buyer gets tokens, but we would like to remind you of the fact that there are different types of tokens. The tokens issued in an Initial Coin Offering may represent equity or debt of the startup, in this case the tokens are being called “security tokens” due to their security nature.
However, many people participate in ICO’s and buy utility tokens with the hope that the value of the tokens will increase as demand for the company’s product or service increases.
On the other hand, the tokens can represent a right to use of a product or service, or have some other specific function in the ecosystem of the startup, being in this case known as “utility tokens”
Utility tokens are not designed as investments, they provide users with future access to a product or service. That is why we normally refer to “participation” in an ICO or “acquisition” of tokens, when the ICO issues utility tokens.
ICO? IPO?
Initial Coin Offerings (ICO) and Initial Public Offerings (IPO) share some similarities Both of them are used for raising money for the company behind the project. In ICOs, a stake of the company or startup is sold to the general public to raise money for the maintenance of the company or its entire operations. IPO on the other hand, deals primarily with investors who are promised some financial rewards for their investments. That’s why ICOs are considered as crowd sales.
Another difference is in the area of regulation. While ICOs are known for not being regulated, the same cannot be said about IPOs. They are regulated by credible bodies such as the Securities Exchange Commissions and other relevant bodies. In most cases, ICOs are launched and conducted by relatively unknown teams without any proof of a previous success in that field although a couple of them have enviable track records. This gives IPOs more credibility than ICOs
There is also a stark difference in their lifespan. While ICOs are known for their short lifespan, IPOs are long-term fundraising programs. Most IPOs last for years while some ICOs have been found to last for a few weeks or months at most.
Why are investors attracted to ICO's?
A blind investment in every ICO to date, including those that have failed, would have generated an average return of +13.2x for investors, according to an analysis of venture capital firm Mangrove Capital.
Joining ICO has many benefits. The most important aspect of the ICO is that it can be helpful for the companies to start new project. Also, there will be opportunity for the investors to get an additional profit by selling their tokens after its ICO.
Like most of the kick-starters, every ICO has a vision to support interesting and attractive project. There will be additional opportunities for making profits with trading system.
How to join Mile ICO
https://steemit.com/milecoin/@mileplatform/mile-websiteHow to make MyEtherWallet
https://steemit.com/milecoin/@mileplatform/how-to-join-myetherwalletHow to make imToken
https://steemit.com/milecoin/@mileplatform/create-imtoken-wallet