Refer to a fairly common form of investment
Learn about ICOs?
ICO (Initial Coin Offering) is a fairly popular form of investment calling in cryptocurrency projects. Each of these ICO developers will create an event and in that crypto project will sell part of its tokens to their favorite investors in exchange for money to fund the cryptocurrency project. and develop in the future. Most ICOs accept payments in Bitcoin or Ethereum.
The ICO usually takes place before the project is completed and helps to fund the costs for the founding team to implement until the project is launched. For some larger projects, part of the cost of the ICO goes into building a platform and providing ongoing support for the project. They also work as an initial distribution model for cryptocurrency tokens, especially those that use a consensus proof of stake algorithm.
What are Crowdsale and Token?
Crowdsale is the token sale of certain cryptocurrencies during the ICO period. Tokens are issued similar to stocks and often take the name of the cryptocurrency itself when sold to investors. A born cryptocurrency can open many or many waves of Crowdsale.
Usually these Crowdsale takes place within 1 week or 1 month will end when the target set for the amount of BTC or ETH is reached.
I take for example the electronic currency Monaco held an ICO on May 18 and ended on June 18. During the crowdsale they sold a token token, MCO, to investors and raised more than $ 20 million during the ICO.
History of ICOs
One of the earliest cryptocurrency projects to implement an ICO was Mastercoin (currently rebranded as Omni), which Crowdfunded on the Bitcointalk forum. Mastercoin is a top protocol of the Bitcoin Blockchain that provides additional features that the underlying Bitcoin platform does not have. The ICO took place in mid-2013. Mastercoin (MSC) raised more than 5000 Bitcoin (BTC) at a rate of 100 MSC per BTC sent to the “Exodus address” during the ICO period.
Then, the cryptocurrency project NXT had its own ICO on Bitcointalk forums, higher than 21 BTC (worth around $ 6,000 after that). NXT created the encrypted cryptocurrency from scratch and implemented the first fully proof-of-stake system. This project has been quite successful with ICO investors, reaching a peak of ‘market capitalization’ of over USD 100 million, and currently over USD 10 million. This makes it one of the most successful ICOs for investors.
Successful ICOs created a rush of new ICOs in late 2013 to early 2014, simultaneously pushing the value of Bitcoin to rise rapidly. Unfortunately, a lot of ICOs have either failed to boost their advertising or were directly scammed. However, this period has witnessed some successful ICOs such as Ethereum.