ICO, Initial Coin Offering is a modern source of funding for start-ups focused on cryptocurrencies. ICO is based on crowdfunding, although it’s not that strict when it comes to raising funds from banks and other institutions.
The originator of a new cryptocurrency raises money for the project on the Internet and gives part of the tokens to the project’s sponsors in exchange for cryptocurrencies that are already listed on markets (usually it’s Bitcoin and Ethereum). After the ICO ended a new cryptocurrency is listed on exchange markets, and its creators, thanks to financial support from sponsors, have funds to develop their start-ups. As every solution for cryptocurrencies, ICO has its pros and cons. One of the biggest advantages is the simplicity of raising funds while basing on blockchain technology, which is cryptocurrencies. It is worth to mention that the most successful that started with ICO is Ethereum! ICO also has its flaws, and the biggest one is that as in any crypto-solution, you can become a victim of a scam. You always have to be careful.
Start raising funds for your start-up!
If you have your idea for a start-up, but you don’t have enough cryptocurrencies to develop it, you can try crowdfunding. You can find many platforms offering such service on the internet, although, it comes with pretty high provisions. Due to that, we can observe growing popularity of software studios specialized in blockchain technology.
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