ICO – Initial Coin Offering
ICO short for Initial Coin Offering is a relatively new phenomenon in business technology space that is doing rounds only in the past few years. IPO or Initial Public Offering is better known in the equity / share market investment world. Referring Inc.com Wiki mentions ICO – Initial coin offering as an unregulated means of crowdfunding via use of Cryptocurrency.
We can not brush aside ICOs as a passing cloud or a bubble since already early stage startups, particularly those doing Blockchain projects have raised over a billion US $ through ICOs.
ICOs – Scam? Bubble?
”Yes, there is a bubble factor and there will be many tears along the way as the market matures and we go through the natural cycle of greed, fear, and poor risk assessment,” says Token Advisors CEO Daniel Santos.
Worldwide Government and Government institutions have taken note of ICOs and considering regulating them or banning them. Setting aside the concerns, risk taking investors and Blockchain startups go ahead with them.
ICO White Paper:
Similar to the IPOs offer document, ICOs usually go with a white paper which describes all about, what is unique, who are the promoters, how much they are planning to collect and how the funds are going to be used etc., For many ICOs – there is a proof of concept idea or a product and with the money raised from ICOs, they plan to take this forward.
Some of the famous ICOs that raised money in a shot time are:
- Tezos raised $220 million in four days.Mashable reports;At $200 million, Tezos ICO is already the biggest ever, and it’s still going strong. Tezos is not based on Ethereum. Instead, it operates on an entirely new blockchain, a “self-amending cryptoledger” that rewards developers who upgrade the network’s protocols and allows for “seamless,” consensual upgrades of those protocols. This makes it a competitor to Ethereum.
- CIVIC the startup has already sold $33m in Civic tokens (CVC) – eight days before the official offering was to take place.
There are many – so many – may be several thousand ICOs in the past. Let us watch the ICO space closely and see in future!
/Malick, Chain Scripts, Chennai, India.
‘I have no special talent. I am only passionately curious’. -Albert Einstein