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How Does an ICO Work?

Many companies and projects have found ICO to be a revolutionary way to raise funds. ICO is a combination of traditional methods and advanced techniques. The technology used in the ICO is the key thing to remember. Investors who invest in it will have no risk. Most of the ICO funds have been raised via Bitcoins (BTC), Ether (ETH) so far. The project creates a Bitcoin address or Ethereum address to receive funds during the ICO and then displays it on the relevant web page.

Bank Account

It is similar to opening a bank account and then showing it on a specific web page to allow people to send money. An initial coin offering (ICO), is a legal way to raise funds via various cryptocurrencies (fiat currency in some cases). It is used by cryptocurrency organizations to obtain the capital necessary to carry out the project. An ICO is where a portion of the newly issued cryptocurrency is sold to investors in return for legalized tender or any other cryptocurrency. It is also known as a token sale or crowd-sale.

This involves raising capital from investors and providing features that are relevant to the project. IPO, i.e. Initial Public Offering, also known as ICO, is a process in which investors are granted shares in the company’s ownership. ICO allows investors to purchase coins that can increase in price if the business is expanded. The token sale was the first, which was conducted by Mastercoin in July 2013. Mastercoin conducted an ICO in July 2013. In 2014, Ethereum raised money through an ICO. In the past, ICO was defined in a completely new way. There were approximately. 20 offerings and also a recent web browser Brave ICO generated approximately $35 million in 30 seconds.

Investors

Investors send Bitcoin, Ethereum, or any other cryptocurrency to this address. In exchange, they receive new tokens that could be very beneficial if the project is successful. ICO is conducted for cryptocurrency-based projects that rely on decentralised technology. These projects would naturally attract only those investors who are interested in cryptocurrency and are familiar with the technology.

An investor’s document is a webpage, whitepaper, or web post. These documents can provide detailed information about the project. However, some of them may be flimsy to mislead those who are interested. Be sure to do your research before you rely on any e-document or white paper.

 


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