Introduction
Act
ICO (Initial Coin Offering)
An ICO is a way of obtaining financing for a project through the sale of a cryptocurrency.
This ICO distribution is done in the initial phase of a project. Achieving raising funds for the development of the same, and which are used throughout the development. It is the fastest way to collect what is necessary for a project based on the blockchain or for example the creation of a new cryptocurrency.
These ICOs are created on the basis of smart contracts (Smart Contracts Bitcoin or Ethereum). Where people and / or companies can invest. And they do it with the hope that the project will be successful and obtain a return on the investment made.
Difference between ICO and IEO
ICO
1.There is no presence of an intermediary
2.Does not disclose the information about the owners
3.There is less transparency
4.Provides funds for new cryptocurencies
On the contrary, in IEOs (Initial Exchange Offering), or Initial Exchange Offering, exchanges participate as agents to raise funds for companies or developers, after evaluating and endorsing their proposals, acting as intermediaries before potential investors . This situation provides some assurance that the projects have some technical feasibility for their execution and completion, in addition to providing a visible, recognized face that generates trust among the interested public, after the numerous scams and failed projects that have been presented with the ICO.
What are the advantages and disadvantages of ICOs?
Advantage :
Quick and easy access: Any company in the world can carry out an ICO in several ways.
Access to the digital market: Anyone with internet can access your proposal and you can carry out a digital marketing campaign.
All the decentralization power of Blockchain technology: By eliminating the intermediaries from the blockchain, the resources to complete each transaction are much less.
Example of initial coin offering:
There are many types of initial coin offering like storj, ark, iota, filecoin, neo, etc but I will be focusing on filecoin.
Filecoin is open source programs and backed by a blockchain that records commitments made by the network’s users and they are rewarded in FIL which is the blockchain’s native currency.
Itsis an initial coin offering program that uses blockchain technology to develop a decentralized data storage network which users to gain access to their servers and share their storage in exchange for Filecoins and other rewards. Filecoin decentralized storage systems allow people to be their own guardian of their data and also makes the website more accessible to people globally.
Conclusion
There is a great opportunity for developers to finance themselves through ICOs and a great investment opportunity, for those who want to try their luck, but although I understand little of this world, I believe that buying a token listed in coinlist is a sure success, so What I understood is not easy, the waiting lists are long and many are left out, so you have to try and try your luck, always understanding that we should not invest money that we need for our expenses because investing is always a risk.
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