Hello and welcome, today you will be reading about all the information about the ICO. The basic idea about what is and ICO, how to invest in ICO and some other facts about it. Without taking too much time let's dive into the topic. Before that if you haven't read my previous article about ICO here is the link
https://read.cash/@r2000/what-is-an-ico-d9d7b354
Initial coin offering
New fundraising vehicle – an initial coin offering, also commonly referred to as an ICO, is a fundraising mechanism in which new projects sell their underling crypto token in exchange for bitcoin and ether. It’s somewhat similar to as IPO initial public offering in which investor purchase shares of a company.
WHY TO INVEST?
Reason for investing in an ICO
The public could be interested in the token on offer for either of both of the following reasons
1. The token ha an inherent benefit- it grants the holder access to a service, a say in an outcome or a share in the project’s earnings.
2. Expecting rising demand for the token which will push up the market price and increase the value for initial investment.
HOW TO INVEST?
The process of investing in an ICO
1. Register for an ICO through project’s website
2. Get bitcoin or Ether
3. Buy ICO token by transferring BTC or ETH to the issuer
4. Receive and store ICO token on your wallet
5. Trade tokens once they are listed on and exchange.
History Of ICO
Mastercoin in July 2013
Ehtereum held an ICO in 2014, raising 3700 BTC in its first 12 hours, equal to approximately $23 million at the time. The real breakthrough can in 2017 throughout which more than 6 Billion USD were raised in over 450 ICOs. Over 7 Billion USD were raised between January and june 2018 despite Facebook and Google banning ICO ads on their Platorms.
LEGAL ISSUES
Are ICOs Legal?
Legally, ICOs still exist in a gray area in most countries. The SEC decision from June 2018 on distinguishing between Utility & security tokens based on Howey test has somewhat clarified the rule of the ICO game. However, the market still remains largely unregulated throughout the world therefore posing significant legal risk for investor and issuers alike. Extreme caution is advised when investing in an ICO.
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The basic idea about what is and ICO, how to invest in ICO and some other facts