Now, a concept that is sweeping the market is ICO, stands for Initial Coin Offering. In the recent years, over $380 million has funded to startups worldwide through ICOs. ICO is a means of raising funds for a start-up with just issuing a white paper and an electronic currency in line with the small network of nodes operating their blockchain. A few years back, Bitcoin was dominating, with 80% of the ICO market, but the emergence of other cryptocurrencies are also making a mark, specifically Ethereum. While, many are appreciating the immense potential of ICOs, but some consider it a bubble. ICOs are creating a lot of hype, and celebrities right from Paris Hilton to Floyd May weather, have raised great funded with ICOs.
What is ICO?
Similar to initial public offering, ICO is a new way of crowdfunding. It backs entrepreneurs to breathe life into their ideas, as instead of giving shares to individual or agency funding your startup, you offer them digital assets known as tokens. A token sale is kind of crowdfunding campaign, except it utilises the technology behind Bitcoin to acknowledge transactions.
Benefits of an ICO Based Cryptocurrency
Technology Wise Ethereum Is the Most Advanced Cryptocurrency Network
Launched in the year 2015, Ethereum is a new electronic currency platform, that’s why technology wise the most advanced and feature-enriched platform, smart contracts to name one. A smart contract is a computer protocol, in simple words a contract between parties, where the transaction is initiated whenever the terms and conditions of the contract are fulfilled. This idea is seen as a revolutionary technology in the global space of doing business. Apart from smart contracts, Ethereum is similar to any other digital currency, it is decentralised, not regulated by the government or financial institution of the country. But, what makes, Ethereum stand tall among the popular cryptocurrencies, is allows coders to use this platform to develop decentralised applications. And, this indeed presents a sea of possibilities to the thinkers out there.
Limited Supply
Being, a new kid on the block, Ethereum, has much more availability of coins. At there are 92 million ethers, which are being injected into the global economy. The biggest thing about this digital assets is that is not fixed maximum supply cap decided at this point of time, like for Bitcoin, it is $21 million Bitcoins.
Stability in Price
Since its establishment in the year 2015, the price of Ethereum has witnessed a steady uptick, around 10$ in the last 18 months. However, that doesn’t mean, Ethereum has no potential for sky-high, it has shown in March this year, with a climb of $155 to reach $95. This makes it perfect for creating an ICO, since, it is less volatile in terms of value. Therefore, you might end up confronting shooty price problem, when the time of returning investment arrives. Additionally, so far, the value of Ethereum has never seen any low apart from one or two short-term dips.