What Is an Initial Coin Offering (ICO)?
An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.
Interested investors can buy into the offering and receive a new cryptocurrency token issued by the company. This token may have some utility in using the product or service the company is offering, or it may just represent a stake in the company or project.
KEY TAKEAWAYS
- Initial Coin Offerings (ICOs) are a popular fundraising method used primarily by startups wishing to offer products and services, usually related to the cryptocurrency and blockchain space.
- ICOs are similar to stocks, but they sometimes have utility for a software service or product offered.
- Some ICOs have yielded massive returns for investors. Numerous others have turned out to be fraud or have failed or performed poorly.
- To participate in an ICO, you will usually need to purchase a digital currency first and have a basic understanding of how to use cryptocurrency wallets and exchanges.
- ICOs are, for the most part, completely unregulated, so investors must exercise a high degree of caution and diligence when researching and investing in ICOs.
How an Initial Coin Offering (ICO) Works
When a cryptocurrency startup wants to raise money through ICO, it usually creates a whitepaper which outlines what the project is about, the need the project will fulfill upon completion, how much money is needed, how many of the virtual tokens the founders will keep, what type of money will be accepted, and how long the ICO campaign will run for.
During the ICO campaign, enthusiasts and supporters of the project buy some of the project’s tokens with fiat or digital currency. These coins are referred to the buyers as tokens and are similar to shares of a company sold to investors during an IPO.
(Quoted from Investopedia)
We are officially start our ICO to public.
Feel free to register and please be patient, it’s scheduled and locked until the date June, 15th.
Hey, don’t miss the Grand Rewards too!
Terms are:
1. Sign up at ico.neftipedia.com and get a referral code.
2. Share the code with your friends and stand a chance to win one of the prizes.
3. Minimum 5 referrals are needed to enter the prize draw.
4. Only those referrals that end in purchase will be counted.
5. The winners will be announced 30 days after ICO completion.
6. The winners will bear all the applicable taxes.
