Is ICO simple to do?
I am damn sure ICO is not simple. It looks easy to learn , but really hard to execute, why not? everything is easy to learn but hard to do!! am I right?
Okay let's get into the point,
How do Initial coin offering works?
Initial coin offering:
In the short term we call it as "ICO". It is just similar like crowdfunding or an IPO. Primarily ICO's are executed to raise fund for a crypto project. Those projects are mainly focused to release a new crypto coin to the blockchain.
It works under the concept of "Smart Contracts "
Smart contacts are computer protocols which formalize the business relationship in distributing the digital assets or shares.
ICO smart contracts split in to two?
Smart Contracts For Token - The method of transferring the Digital tokens and also the method of retrieving the balance amount for an ethereum address.
Smart contracts for Crowd Selling - It instructs the business people with a set of rules, And it defines the procedures and structures while executing an ICO.
For more info refer this article >> Smart Contracts With ICO
I have highlighted a word called, Digital tokens. It is another important thing that you have to understand.
Digital/ Crypto Token :
During the process of ICO, Tokens are used as the shares, in which the investors are invited to invest on it.
Step by step execution of an ICO:
The owner of the crypto project must publish a white paper regarding the project, the white paper has to define the following things.
1. Technical elelments of the project
2. Minimum and maximum targeted capital fund of the project
3. Percentage of shares for every investment
4. Time stamp
5. And a website which executes the **ICO**
The ICO campaign will end once the targeted amount reached, or if the times exceeds.
In any case, if you are with an aim to start an individual ICO business you can get clarified with this website bitdeal. Bitdeal provides you the complete solution from the start of creating an ICO platform and guide you to executing with right manner.
To know more about ICO, smart contracts, and digital tokens you can refer this article >> ICO, digital tokens, smart contracts-All new cryptocurrency business solutions at one place