The definition of an ICO (Initial Coin Offering) is an unregulated method of fundraising to support a new project via cryptocurrency. An Initial Coin Offering is used by startups to avoid the strict and over-regulated capital-raising process required by venture capitalists or banks in traditional marketing methods.
In an ICO campaign, a percentage of the cryptocurrency is sold to enthusiasts or investors of the project in return for a cash payment or other cryptocurrencies, often Bitcoin.
These unconventional funding and payment sources allow founders to raise funds from investors who are intrigued by this new product and prospects, rather than following traditional methods, which are highly regulated and controlled and where formulas or rigid metrics are set in place to determine their decision to invest or not. However, in the case of cryptocurrencies, this shifting paradigm changes the dynamic of how investment syndicates are assembled and operate, transforming the way money is generated and exchanged.
This type of trading is not for everyone. Many new investors in ICO's have no knowledge or experience on how the system operates and quite often just sit on their initial purchase for long periods of time in the hope that at some point in the future it will increase in value and they can sell at a profit.
Pick a token distribution scheme.
The hardest part of launching an ICO is the task of planning it all out beforehand, but this step is still essential for any offering, poor planning of any project will always end in failure whether it is in the cryptocurrency market or a traditional market. You Must have a plan: What kinds of investors will your ICO atrract? What type of blockchain user will it target, and how? All of these initial thoughts must be addressed at the outset.
DECIDE HOW MANY TOKENS YOU’LL GIVE OUT.
This step sounds simple, but it’s another major decision that could shape your token economy for years. Small distributions will have a limited marketing and community-building impact, while large numbers can dilute the market value of your token — a particularly dangerous situation if it alienates actual token sale customers. So this decision can be crucial to its success or failure.
Speaking with Bitcoin Magazine, CoinMirror co-founder Sebastian Hoffmann stated, “We came up with CoinMirror to democratize investing by providing access and education. We wanted to break down investment barriers and give power back to the people. We were excited to launch our solution and contribute to the decentralized community, and ultimately help to accelerate the healthy evolution of the ecosystem.”
Blockchain startup Tierion has completed its previously announced token sale, raising $25 million.
As CoinDesk reported shortly after launch, Tierion launched its ethereum-based Tierion Network Token (TNT) as part of a bid to support the network effects of its Blockchain protocol.
According to its website, the TNT sale raised a total of $25, 032, 609, slightly surpassing its stated goal.
In an interview with CoinDesk earlier this month, Tierion CEO Wayne Vaughan explained that the token is aimed at offsetting the costs of running the server clusters associated with the network that then anchor data to either the bitcoin or ethereum blockchains.
So Inconclusion it is obvious that good planning will always bring good results so investors in any ne ICO are highly encouraged to check carefully before they decide to invest new startup, especially in the ICO Market.
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