Let’s Blockchain — Part-1
A Step towards the Initial Coin Offering (ICO)
So finally… I got a topic to begin with a series of the short blogs. This series will mainly be focused on fundamentals of blockchain. In this article, let us try to join some bits and bytes of ICO.
Every successful idea passes through a pipeline of framing, presentation and several modifications before it’s final acceptance in the market. By the way, acceptance is just the entry-point. Let’s dive deep to explore ICO and know how it is influenced by acceptance of new ideas!
The more you invest, the better you get back!
The more you invest, the better you get back! It makes some sense… isn’t it? Well, this applies to all kinds of growths that we can think of! Every new startup requires funds since they step-in the market. But the challenge is — ‘how to get it?’.
Although the idea is quite similar to the IPO, yet unlike the stock investments, herein the crypto-world long chain of intermediaries has been trimmed-off by the blockchain!
In order to raise the money, companies initially come forward with a simplest yet transparent presentation of it’s ideas i.e. typically called — white paper. One of the main motives behind these core highlights is to convince as many investors as possible. Indeed, this process equally focuses on maximising the investors, too. Although the idea is pretty much similar to the Initial Public Offering i.e. IPO as in stock market, yet unlike the stock investments, in the crypto-world, the long chain of intermediaries including auditors and exchange-operators has been trimmed-off by the blockchain. In fact, this is one of the key factors that offers increased trust for both: companies & investors. This particular way of raising funds for blockchain based firms is termed as Initial Coin Offering (ICO).
In ICO, irrespective of the number of the investors, companies of any size can raise funds globally in a peer-to-peer fashion. Being distributed in nature makes ICO to be even more secure and trustworthy. Along with that, as every investor is provided with some amount of the tokens, ICO is often referred as Initial Token Offering (ITO), as well. Mostly through public-blockchain, companies like IBM & Microsoft have really been benefited by ICOs.
Well, ICO or ITO is one of the earliest method used to promote the blockchain based projects. But now, there have been many advance methods introduced like IEO and IDO. The upcoming articles will take the conversation forward with some more interesting stuffs in the series…
