Saturday, December 23, 2017

What is ICO Coin and What are its Advantages and Disadvantages

What is ICO Coin and What are its Advantages and Disadvantages - ICO or Initial Coin Offering has recently become more and more sophisticated in 2017, many developers are using this method to raise funds to develop their projects. Funds collected are not half-hearted can get millions of US dollars.

ICO was first performed in 2013 and the first coin released from ICO is coin Mastercoin or OMNI. A cryptocurrency and Blockchain-based communication protocol that has collected many tokens in July 2013 at the forum.

What is ICO Coin and What are its Advantages and Disadvantages
Ethereum is currently the most successful campaign ever conducted and its coin has now reached a price of 0.12 BTC per coin. Some time after successful funding campaigns in 2014.

What is ICO? The following Explanations and Advantages About Initial Coin Offering (ICO)

Ethereum as a criptocurrency launched in 2015. Since then it has been able to become the second largest coin currency after bitcoin.

Read this to : What is Bitcoin and How to Get Bitcoin Fast
What is ICO?

ICO Extension of Initial Coin Offering. Initial means the earliest, Coin means digital token / coin and Offering means bidding, when interpreted in its entirety means the earliest coin offerings before being launched into the free market.

What is the Purpose of ICO

ICO is usually offered by the developers where their goal is to raise funds to develop the projects they do in this case is a digital coin. They need funds to maximize the projects they undertake to quickly develop and can be quickly completed.

What are the advantages of ICO

For the developers they will get financial assistance to accelerate the projects they develop so that can be enjoyed by many people. For investors will get a token or coin which later coin can be traded freely in the market exchangers.

The advantage for investors who follow ICO before the coin is launched to the free market is the price given will be cheaper. And usually when the coin is launched the price will jump up to more than 5x the price of ICO. This is what makes investors enjoy this ICO.

What are the Disadvantages of ICO

Behind the profits there must be disadvantages that come to him. Because ICO is investing in nature then we spend money and give to third parties and the money may not be used according to the agreement when ICO is carried away without any explanation that is clear or more familiar with SCAM.

Several things become the problem of SCAM when the ICO is not clear project, the purpose of collecting funds made by developers and teams that are not clear or not plastered. Usually this will be explained in the whitepaper.

What is the correlation between ICO and IPO

IPO is Initial Public Offering which is an investment in a company such as google, facebook and will get a share of the investment.

The most striking difference from IPO and ICO is that the IPO when it wants to raise funds should through many regulations such as government institutions, financial institutions, permits and this is not fully acceptable later.

While ICO is more simple and easy without going through complicated regulations such as IPO and can be followed by anyone who wants to make an investment. Uniquely, there is no minimum limit to invest in ICO.

Other article : What is Cryptocurrency and Should You Investing Your Money there?
Forms of ICO Investment

ICO is used in online investment which is more inclined to digital currency or cryptocurrency such as bitcoin which is the first cryprocurrency