An Initial Coin Offering is a new way for startups and entrepreneurs to bring products and services to life without going through the painstaking process of wooing VCs in traditional capital markets, who will at best immediately own a double-digit stake of your company.
Rather than relying on traditional methods for raising capital the ICO, or Initial Coin Offering, enables individuals and teams to generate funds in the form of cryptocurrency, helping provide the means necessary to move forward with their product or idea.
- Lower barriers to entry for individuals
- Less waste from established systems
- Ability for anyone to start a business
There are, of course, reasons not to do an ICO. So before you try creating one you should probably understand the practical uses first.
Thanks to ICOs the value of cryptocurrency tokens such as Bitcoin (
BTC), Ethereum (
ETH) and Litecoin (
LTC) have been skyrocketing. Cryptocurrency values have been lifting so fast it’s difficult to even grasp the wealth generated as a result.
After speaking with a number of individuals about ICOs, both friends and strangers, the common response I hear is I don’t want to invest in something I don’t understand.
The individual I spoke with was pretty shocked he hadn’t heard Warren Buffet mention the explosion in value, which Buffet now calls ‘a bubble’. Kind of like Jamie Dimon, the CEO of one of the largest banks in the United States, when he talks negatively about Bitcoin.
But then again neither Buffet nor Dimon made their fortunes from cryptocurrency. And so it seems listening to them talk about something they don’t understand would be foolish.
For many it is the fear of the unknown which cripples us. And until we’re able to overcome our fears cryptocurrency won’t seem like the no-brainer it really is. And if you’re young it would be a mistake not to put in at least something.
And once you’ve got yourself some Ether check out the ICOs section for info to help you find opportunities to invest in some of the hottest cryptoeconomic opportunities.