TL;DR - ICOs are essentially a type of crowdsourcing using cryptocurrencies. There are many uncertainties in the industry but also many pros.
Helpfulness - 4
Tags - initial coin offering, creative funding strategies, Pros and Cons of ICO
- What is an ICO?
- How does an ICO work?
- What are pros and cons if ICO?
- ICOs lack formality or harsh rules unlike some of the other forms of fundraising
- ICOs are incredibly successful, raised $5.6 billion in 2017
- ICOs are basically blockchain crowdsourcing, the cryptocurrency version of crowdfunding
- Anyone can become a part of the investment to support DApp developers
- ICO started with Ethereum raised 0.4 million dollars in 2014
- Ethereum is most prominent cryptocurrency funded by ICOs
- ICOs give promising projects an opportunity to shine
- many projects in VC world don’t get to reach IPO due to large amt of paperwork, ICO don’t require any
- Establish bridge between company and community
- Collected $6.8 billion in 4 months, shows widespread support
- Can be scammed by hackers since no paperwork required
- There is no certainty when you invest in project, there are no regulations so it’s all based on the team’s credibility
- ICOs are increasingly being watched by SEC and CFTC
Follow up links:
- What is DApp development? https://thecontrol.co/a-brief-overview-of-dapp-development-b8ac1648322c