I first knew about ico when I was given an article to write by a client on a freelance website, though I never knew anything about ico, but I decide to give it a shot;I jumped on the search engine and that was how I started expanding my knowledge on ico.
ICO is an acronym which means initial coin offering.
Ico is a way to raise funds by for a new project(or cyptocurrency venture), this project is always a new one,icos are not regulated by any particular body, that’s why new ico springs up everyday.
Ico is used by startups to escape the tough and regulated means to raise capital through capitalist ventures or banks. In an ico campaign, a given percentage is offer for sale to early backers of the project in exchange for a higher valued cryptocurrency, especially bitcoin.
When an initial coin offering is about to begin, the firm put up some important thing such as the white paper and a website.
The white paper gives a full insight on how the ico will be run by
· It states details of the ico project
· How much capital is needed for the project
· The problem the ico will be solving
· The amount of token or coins to be sold out
· The kind of cryptocurrency that will be accepted from backer
· The duration of the ico
During the ico those in support of the project are allowed to by some coins with other cryptocurrencies like bitcoin. This is similar to ipo (initial public offering) where companies sell shares for investors
The money raised from the ico is used to complete the project but if the ico fail in some cases the money is returned to the ico backers.
Participants of ico normally believes in the progress of the ico so they acquire the cryptocions at a very reduced rate hoping that the coin will be listed on coin exchange market where they can trade with it, some can decide to keep their coin for a longer time before deciding to sell it off for higher profit.
Example Mr A bough an ico coin for $0.7 and when it was listed on exchange the price of the coin went from 0.7 to $20 per coin in this case Mr A has made a huge profit by selling what he bought at 0.7 for $20. This is the kind of magic ico can do for his backers or supporters.
There are different ways to make money using ico which will be coming up on this blog.
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