Understanding Initial Coin Offering
In the cryptocurrency industry, there is initial coin offering which is the same as the initial public offering. The initial coin offering is very suitable for the company that wants to start a new cryptocurrency. You shall be provided with a cryptocurrency token once you invest in the company.
In the initial coin offering, the first step is to create a whitepaper. In the whitepaper, there will be an outline of the project: needs, time of completion, money required, time of the campaign, and kind of money that shall be accepted. After the beginning of the campaign, people can either use flat or digital currency to purchase the cryptocurrency tokens. In the initial public offering, the shares are the same as the cryptocurrency tokens. The campaign will be deemed unsuccessful when the amount raised does not meet the target of the project. If the amount of money which had been targeted is reached, the project is going to be executed.
Cryprtocurency is still on the development stage. In the initial coin offering, it has not been very clear on what exactly should be disclosed. Professional such as Chris Brummer have tirelessly worked to ensure that the right things are disclosed in the offering. For many years disclosure of the ICO has been completed and fraudulent. To ensure that there is a better disclosure, experts are calling for the registration of ICO in the security market. All the factors that are used in the evaluation and pricing of the cryptocurrency token should be disclosed. Another important thing is the clarity of the disclosure.
Initial coin offering has specific advantages over the initial public offering. Unlike in the IPO, no shares are involved as an investor is provided with a blockchain. The payment of this kind of investment is made using other popular digital currency such as bitcoins. Launching ICO is straightforward. Today, many platforms have been established on the internet to quicken the process of launching the ICO. Initial coin offering has a potentially high return compared to other kinds of investments. There is no doubt that many people are becoming millionaires after investing in ICO.
When you are engaging in ICO, you need to be vigilant. Unlike in the IPO where only proven companies are involved, in ICO, you may be scammed. Do your homework before you purchase the cryptocurrency token. On the web, there are endless sites where you can get advice if you are new in the ICO.