When the Bitcoin was introduced by Satoshi Nakamoto in 2008 in a paper called Bitcoin: A Peer-to-Peer Electronic Cash System no one expected that it would become a worldwide payment system. It was decentralized in 2009 and from then it has skyrocketed to reach an exchange rate of a record $19,783 in December of 2017.
In 2013, Mastercoin held the first token sale and it has gained a huge popularity ever since. In this article we are going to present a brief introduction to ICO.
What Is ICO?
ICO, short for Initial Coin Offering, is a revolutionary way of crowdfunding. It is centered around cryptocurrencies which have become a source of capital for startups nowadays.
How Does It Work?
In order to get a legal tender, or Bitcoin or Ethereum, a quantity of crowdfunded cryptocurrency is sold to investors in the form of tokens. The tokens are promoted as future functional units of currency if the funding goal is reached and the project is launched.
A Brief History of ICO
As we mentioned earlier, it all started in 2013 with the first reported ICO conducted by Mastercoin. In the same year, Btxchange.io reports that Ethereum raised 3,700 BTC/$2.3 million in the first 12 hours with a token sale, and in 2015 Karmacoin held an ICO for its Karmashers project.
The following stats will help you realize how big ICO actually is. In 2016, 54 major ICOs raised almost $103 million, and in the following year 92 major ICOs raised $1.25 billion, which is an enormous jump from the previous year.
The following list contains the advantages of ICOs.
ICOs are open to the public.
People can help shape the future of the crypto ecosystem.
Token can be bought at a low price.
There are several disadvantages as well.
Investing in ICOs may be risky.
The majority of ICO investors are enthusiasts.
ICO is no regulated by any rules or registered.
These are just some of the interesting facts about ICO roundups. To find out more about the newest trend in funding, please take a look at the infographic which follows.