The abbreviation of ICO is Initial Currency Offering. It is the latest trend used by crowdfunding project.Mainly one can find this is in the Blockchain and cryptocurrency industries. It is also referred as ‘crowdsale.’Companies release cryptocurrency for the funding purpose, and releases in the form of tokens called as crypto-tokens.These souvenirs are sold to people who exchange for their Bitcoins. At times it can be direct money transaction as well.


Difference between an IPO

Even though at the top surface both IPO and ICO looks similar, they are different.  The Initial Public Offering (IPO) is different from ICO in the following ways.

IPO released from a company for one share indicates that they also become a partner in the business as shareholders do. But, in the case of ICO crypto-tokens are given out to the public and can be used for voting power. In simple terms, more token means more significant influence.

The government has all control over IPO, and they regulate all its movement and they are the sole decision makers. The company is obliged to submit many documents to the state and take their approval and follow their guidelines. On the occurrence of any non-compliance, the severe penalty will be imposed by the government.  Cryptocurrency is not accepted into control by the government. Any project can launch ICO, and they can share their money irrespective of the country they are from.  Such can be published in any campaigns including the ICO calendar, ICO bazaar, or waves.

Benefits of using ICO

If one takes part in ICO, then it means the launching company gets support. Also, the purchased individual can make a profit by selling them.

During ICO the crypto-tokens get released with a fixed rated and is denominated in US dollars or Bitcoins. There is backing for the price but for the fact that the team will release an end product in the feature. Hence the cost is low initially. Once the project takes off the token value will increase, and that is how people can make a profit selling them in the market.

It indicates that it is okay to purchase at the inception stage and help the company generate revenue to complete the project and later can sell it to get profit as high as 6000 percent.

But for the benefit always think about the flip side of the project not taking off or product not getting delivered. Both the situation will land in no increase in the token value. This is the worst case, and it may not happen often, and hence ICO makes sense to both people and the organization.

Given the concept and benefits of ICO, if you decide you look for the same, then you must take a look at the ICO website for any Blockchain project launch. Apart from the site which is not always viewed by people, platforms including the ECONOMY and State of the Dapps showcase the release of the tokens for the general public to know the happening. One can check for the campaigns related to ICO and get benefitted.