Reviews of ICO (Initial Coin Offerings)

Initial Coin Offering (ICO) is a crowdfunding method utilized by fresh cryptocurrency companies to raise capitals. In ICO, some proportions of those recently issued cryptocurrencies are offered to people that are interested in supporting the project. They're offered to exchange for other established cryptocurrencies such as Bitcoin, Fiat and Ether.

It is similar to the principle of people making a profit once the share they bought in the stock exchange rises in value. ICO is different than buying shares at a stock exchange because you don't receive a share of the possession right when you purchase the new tokens.

Short History on ICOs

At the beginning stage, ICO was conducted by companies like Mastercoin, Ethereum and Karmacoin. Ethereum conducted one of the largest ICO in 2014 by increasing a total of $18 millions in the first phase of 2014. They violate the record by raising 3,700 Bitcoins that's equal to $2.3 million dollars over the first 12 hours of the effort. Kik conducted the first Egyptian ICO in September 2017 however, the job was interrupted by a phishing scam via the flow of a fictitious URL in the social media.

Today, ICO sales have become increasingly popular with around 50 token sales being conducted each month. Beginning from 2017, ICO has been growing at a fast pace with $2 billion value of nominal earnings successfully conducted. This demonstrates that it isn't going to become a temporary method used by new cryptocurrency company to increase funds but it's here to stay for long term.

These days, ICO token sale is so popular that at least a few ICO begins daily. It has been predicted that over $4 billion worth of token sales will be conducted this year. Genesis Vision, a Russian based company, conducted an ICO effort that runs from the 15th October 2017 to the 15th November 2017. They figure out how to raise a total of $2.3 million at the token presale.

How Does ICOs Fundraising Work?

A cryptocurrency firm which wishes to raise capitals via ICO must offer a couple of details including project description, project purpose, amount have to be raised, percentage of tokens the corporation will keep, types of virtual currencies approved, and the timeframe of the ICO campaign. Backers that are interested can email the seller and ask for more details of the job before performing a trade. If they successfully raise the sum for the campaign, they will execute the strategy to complete the undertaking. If not, they will return the money back to the backers.

How Scammers Use ICO to Take Out Fraud?

ICO can be performed to help raise capital for various kinds of businesses and charity organization. Additionally, it has been utilized as an instrument by individuals to conduct frauds. Scammers would use ways to increase the ICO value briefly and leave the project afterwards to earn a quick profit. Scams happen cause of the lack of regulation from the government. The same as any investment, there is a danger when coming to put money into the first coin supplying.