What is ICO

What is ICO

Today, the location of the ICO is one of the most modern and effective ways of raising funds in new projects. In English ICO stands for "primary distribution of coins."

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Based on ICO is a scheme under which the authors of a startup release a certain number of tokens of the new cryptocurrency, and the obtained from the sale of funds directed to the development of your project. The scheme has no fundamental differences from the placement of shares. The difference is only in terms that the creators of the project was laid in coins, for example, they can be purchased in the future only certain goods, to trade freely and not before a certain time and so on.

 

The yield in this case is provided not only project implementation, but also the rising cost of the coins on the exchange.

 

ICO today operations are carried out mostly Amateur projects in the field of financial technology, but virtually no sectoral limitations exist, and the operations of ICO available to any start-UPS.

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The initial placement of tokens has met huge demand from investors, primarily interested in high technology. It is not surprising that against this background to operations ICO has resulted in an increased interest not only the professional community but also state regulators.

 

Overall operations of ICO must recognize the direction of the investment activities with high risks. Individual projects are able to ensure huge profitability for investors in ICO Ethereum has long been around!utilise millionaires, but many projects are closed without any payment to its investors.

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That is why in some countries, for example, China imposed a temporary ban on the operations of the ICO. Attribute this to the lack of regulation and protection of potential investors. Work toward legislative support of placing tokens in other countries.

 However, the ICO market continues to evolve rapidly. Suffice it to say that through the mechanisms of the ICO for incomplete 2017 year attracted a total of about $ 1.2 billion of investment, and in future this amount will increase. The presence of projects where the degree of profitability is several thousand percent, is the best advertisement for participation in such placements.

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