You already know cryptocurrency is overgrowing because it is decentralized based on this source link, which means there are a lot of nodes working behind the smooth functioning of blockchain since blockchain is a decentralized system, so no one can control the blockchain, whether it is the founder, government, or president of the country. With this popularity, many exchanges come into existence as a startup, and they need funding at the initial stage because starting a business requires a lot of money and one person cannot invest all the money he has. There are many ways to raise funds, but in this article, we will talk about ICO’s prominent and popular way. So, without wasting time, let’s understand the process of ICO in cryptocurrency.
What are ICOs?
We know many blockchain startups have come into existence, and they need funds for smooth functionality. There are various methods to raise funds, but the primary popular and trending method for cryptocurrency blockchain startups is ICOs which stands for initial coin offerings.
You have heard the word IPOs that stands for Initial Public Offerings used in stock exchanges that raise funding for companies listed on the stock market. If a company wants to raise funds from the public, they have to list their company on the stock exchange, and after that, they will publish their IPO, and people will purchase their shares and have ownership according to the value of shares. Similar to IPOs, in cryptocurrency, the popular method to raise funds is ICOs; startups launch their ICOs to raise funds from the public and give the coins in return.
It is a new and trendy form of raising money for blockchain exchanges because raising funds from angel investors and other investors is not convenient.
Most famous ICO
Do you know what the famous ICO was in previous years? Ethereum coin was launched by the ICO in 2021 to raise funds that were the most popular ICO in cryptocurrency. In this ICO, Ethereum gets 31,500 BTC or bitcoins. After receiving the bitcoin, they distributed 60,000,000 or 60 million Ethereum tokens to the people as part of the Ethereum funding. You can compare the value of one Ethereum with the current price of Ethereum. In 2015 the price of one Ethereum was $1.30 US dollars, and at the time of writing this article, the cost of one Ethereum is $3,232 US dollars, which is too high. Now, you can calculate the worth of 60 million bitcoins by multiplying it by $3,232, such a considerable amount, and people that have invested in these ICOs are now in huge profit.
Investing in ICOs
From the above information, we get to the point that many cryptocurrency startups or exchanges want funding. They are publicizing their ICO to raise funds for their startup to expand the trade, and it is time to invest. In the case of thorium ICO, people who have invested are now at a huge profit because the bitcoin price was meager, and now the price is at a very high rate.
So you can also earn money through investing in the ICOs, and it is the best investment. It is the same as investing in the company’s shares, and you will get dividends or some percentage of the profit. However, there are some terms that you must follow before investing in the ICO.
Do your research. There are many new startups that they want to fund; some of them will not get, and some will get very low, so before going to the investing stage, do your research.
Do not believe in the media or news that is trending because some information gets viral because of their headline and content, and that is not the case at all. So do your research.
From the above information, we have learned that ICO is the best form of investment. The meaning of ICO is an initial coin offering that is the famous and best way to raise funds for cryptocurrency startups rather than from other investors. Before investing in the ICOs, you must do your research and do not follow the trending news or media. You can earn by investing in ICO, but it will take too much market research; you have to analyze the goals and mission of the startup and what their plans are, and it is a very difficult process.