We already introduced you ICO term previously on AIDUS Medium Channel. Now we’d like to talk about the necessity of ICO.
An ICO stands for “Initial Coin Offering.” It is a fundraising mechanism through which new projects sell their underlying tokens in exchange for Bitcoins or Ethereum. The ICOs are open to the public.
The concept of Cryptocurrency ICO means that the people can participate in the shaping the future of that entire system.
ICO is necessary for blockchain companies fore the fillowing reasons.
✅There can be investors in a decentralized manner. Which means people from all around the world can invest in the project. Through this becomes easy to raise funds.
✅ICO is needed for the growth of blockchain industry through public network.
✅Inflow of funds is essential for technology development. Blockchain technology cannot create profit itself that it is difficult to receive fund from VC and investment companies.
✅Economy of scale is necessary in order to compete with global firms. In other words, larger-sized fund is needed.
🌍The online nature of the ICOs lowers the marketing and the settlement cost. Similar to traditional crowdfunded business, a network of supporters benefits the ICO-funded start-ups. The supporters also get the benefit of tokens of which the value increases based on usage. An ICO removes this limitation and opens up opportunities for anyone in any geography. This democratization essentially allows anyone to contribute.
Any type of fundraise will require a lot of professional advisory in different parts of it.
While the industry looks glamorous and simple on the outside, the reality is that even when your company matches the perfect description of an ICO, you still have to do a serious amount of work and preparation in order to actually launch this type of campaign.
And most importantly, there is currently no consensus of exactly what type of ICOs are allowed in which jurisdictions. The current field is full of questions regarding legal, taxation, technology, and a lot of very legitimate concerns about the practical uses of Blockchain technologies and its problems.
Keep paying attention on AIDUS Project!
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