Nowadays a lot of people are still wondering ‘What is ICO?’. ICO cryptocurrency is one of the methods of attracting investment for the development of a project. ICO has developed in parallel with the popularity of the Ethereum platform.
During this procedure, investors receive project tokens in exchange for their funds. Quite often, tokens serve as digitalized stocks that can be sold for fiat money or cryptocurrencies. Projects that in this way attract funds for development are called ICO projects. What is ICO project? Let’s try to find out!
What Is ICO Crypto: Key Features to Know
What is ICO crypto? ICO or Initial Coin Offering is a release by any project of coupons, or tokens intended to pay for services of a platform in the form of cryptocurrency.
So, what is ICO crypto? In fact, ICO is another form of a crowdfunding model, when participants finance the development of a company now in order to get some benefits from it in the future.
For example, for tokens of a Storjcoin X project, you can buy a certain amount of disk space in Storj or increase throughput. You can also earn tokens by leasing a certain space on your hard drive.
By issuing its own ‘money’ and exchanging it for one of the common cryptocurrencies (such as Bitcoin or Ethereum) or even for real currencies (dollars, euros), the project can secure itself the funding necessary for launch or development. In addition, by issuing currency for a project, you can accelerate its development and automatically solve a problem of future monetization.
What Is ICO Cryptocurrency: How Does It Work?
What is ICO cryptocurrency? How was mentioned before, ICO stands for Initial Coin Offering. In terms of meaning, a token is like a bond — you invest money in a company and receive a token in return. And then the company transfers part of the profits to cryptocurrency wallets of token holders. Tokens can be bought for both regular money and cryptocurrency.
What is ICO cryptocurrency? How does it actually work? After initial fundraising, ICO organizers distribute tokens to investors, who can either store them on their crypto wallets and receive a part of the company’s profits, or transfer them to cryptocurrency exchanges and sell them.
People invest in ICOs mainly in the hope of increasing their funds hundreds or even thousands of times. Everyone is thinking about Ethereum, which raised funds through crowdfunding — in three years, the price of the token increased from $2 to $1389.
What Is ICO Coin: Key Information About Tokens
What is ICO coin or token? By their nature, tokens are a type of tradable digital asset that represents the specific use, services, or assets issued on a blockchain. Nowadays the concept of a token is extended since different tokens have completely different functions.
From a legal point of view, tokens can take different forms:
- assets or products,
- foreign currencies,
- means of payment,
- registry entry,
- bonus points,
- smart contracts.
Why Invest in ICO Tokens?
By buying tokens issued by an ICO project, investors are about to:
- benefit from a resale of tokens at a higher price in the future (assuming that they will be in high demand — for example, in case the project will make a hit).
- use their coupons or tokens in the future by receiving services at a lower price.
- support an interesting and worthwhile project.
What is ICO coin? What other interesting facts do you know? Feel free to share your knowledge in the comments!