Steemit Crypto Academy | Initial Coin Offering (ICO) | Homework task for @imagen

Hello All Steemians !!!

On this occasion, I will try to take a class at Steemit Crypto Academy. I am interested in joining this class because there are many new lessons that I will get here. I will do homework task from professor @imagen. Lesson discussion about Initial Coin Offering (ICO). Lets try...

Initial Coin Offering (ICO)

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Nowadays, the development of a project can be done in various ways, especially in the cryptocurrency world. To issue new coins as a long-term project requires initial preparation. Initial Coin Offering (ICO) is a method used by a company to get funds at the beginning of a project. The main target of the ICO way is investors who will invest in this project by buying coins. The company will try to get as many investors as possible until their initial set-up funds are sufficient.

Investors will see all things related to the sustainability of this project. The company will provide everything needed to convince investors to invest. This is usually called a proposal or whitepaper. In the whitepaper of a project it will contain why this coin needs to be poured into the crypto market, how many coins were sold during the ICO period, how much money was needed during the ICO, and how this coin was after the ICO period ended. All of these things will become a consideration for investors to make the right decision.

Difference Between Initial Coin Offering (ICO) And Initial Exchange Offering (IEO)

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The thing most underlies the difference between ICO and IEO is in terms of offering. The ICO method is where the company offers coins to investors directly. The IEO method is where the company offers coins via an exchange platform that acts as an intermediary.

Furthermore, in terms of users and ownership. The ICO method provides an opportunity for anyone to become an investor without exception. The IEO method only provides opportunity for exchange platform members to become investors.

Furthermore, in terms of crypto market. The ICO method does not make the company issue coins directly to the crypto market after investing but after the project is completed. The IEO method instantly issues coins to the crypto market after the investment is running.

Advantages Of Initial Coin Offering (ICO)

1. Profitable
   After the ICO period is complete and successful, the development and increase of the coin price will have a direct impact on the company and investors to get big profits.
2. Public
   During the ICO period anyone can become an investor and will speed up the progress of the project for success. Very easy and simple for anyone.
3. New investment
   The launch of a new coin will attract investors to share investments in various coins in the crypto market. Great idea for investors.

Disadvantages Of Initial Coin Offering (ICO)

1. Fraud
   Fraud is often carried out by companies that want to reap profits from investors by defrauding new projects. Caution is the key.
2. Risk
   The investment risk is very high because there are several projects that do not have official legality. Legal checks are absolutely necessary.
3. Loss
   Losses will be felt by investors if the project is unsuccessful or goes bankrupt. Analysis of project potential is very important.

Initial Coin Offering (ICO) Of Ethereum

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Ethereum is known as a pioneer of Initial Coin Offering (ICO). Ethereum has come a long way to develop this successful project until now. Where Ethereum is the second largest digital coin and occupies the list no. 2 on the crypto market. The launch of the Ether coin and relying smart contract system on the blockchain is what makes Ethereum so highly capable.

Ether coins sold for $0.31 at the start of the project. This coin now costs around $700. It provides a return on investment more than 200.000% for investors who bought this coin during the ICO period. 60 million Ether coins were sold to investors during the ICO and development of this project. This is something to be very proud of and appreciated. Until now, the Ethereum Foundation has successfully supported many large developer communities, making Ethereum the most popular ICO platform with 80% market share.

Thank you for the time and opportunity to develop the knowledge I have. Hopefully it will be useful for all readers.

CC :
@imagen
@steemcurator02