What is ICO? Let's Find OUT Everything About This New Concept

Meta: Whether you believe investing in virtual currency is worth the price or not, the real dollars are flowing into this market, and it’s worth noticing.

The Goldman Sachs Group acknowledges that it is hard for institutional investors to overlook the virtual money market. Total market capitalization has swelled to $ 120 billion, of which bitcoin has risen more than 200% this year.

"Whether you believe that investing in virtual currency is worth the price or not, the genuine dollars are flowing into this market, and there are no denying that this is worth watching," analysts Robert Boroujerdi and Jessica Binder Graham of Goldman Sachs wrote in the report sent to customers.

What is ICO? Let's Find OUT Everything About This New Concept
WTF is ico?
The heart of the debate is no longer the legitimacy of virtual currency, but it has shifted to the fast pace of recruits in this market. Funds raised through fundraising and ICO (like the IPO, but not the share issue but the token) are even larger than the proceeds from seed startups on the Internet.
The total capitalization of virtual currencies has reached $ 120 billion, of which Bitcoin accounts for half
Since the day's bitcoin divided its media’s focus with litecoin and silly dogecoin, cryptocurrencies have got bigger and bigger. That was the period when Gox led; cupcake shops possibly became media concentration by permitting the arithmetical currency and pastry was a standard bitcoin-pricing measurement.

At present, there are various cryptocurrencies which are worth eight numbers, and the birth rate of newcomers is increasing their speed. So, keep track of this article to find out more answers for your questions!

ICO foundations

ICO is a form of legal capital mobilization
ICO (Initial Coin Offerings) - a form of legal capital mobilization of start-up companies - has become a popular financing method for cryptocurrency projects. Today, each ICO is an event in which each new cryptocurrency project will sell a portion of Cryptocurrency shares in the form of tokens to first-time clients and venture capitalists in exchange for money. The ICO will provide a way for the cryptocurrency project creators to make money for their operations. Most ICO earns money by Bitcoin or other Cryptocurrencies.

The ICO usually takes place before the project’s completion and supports the costs incurred by the founding team until the start of the project. For some larger projects, part of the ICO money will be turned into a continuous support facility for the project. They are also considered an early distribution model for cryptocurrency tokens, especially tokens with proof of stake.

ICO participants will invest in the success of the project. They can help people understand and raise awareness of a broader community. They also can liquidate early for cryptocurrency tokens at the beginning of the transaction. ICO participants are always driven by the profit potential if the project is started and the tokens become more valuable than the ICO's.

Is virtual currency money or commodities?

Virtual currency is money
Coins are recognized as a currency because they are seen as a medium of exchange, but also as a commodity because the coin is a finite resource. The classification of virtual currency is currency or commodity depending on the country, the government and even the mode of application.

In the United States, the Internal Revenue Service (IRS) regulates non-monetary virtual currency in any jurisdiction. On the tax side, the IRS sees virtual currency as a type of asset.

How is the ICO different from the IPO?

The major differences between IPO and ICO
In fact, there are some similarities between IPO and ICO concepts. However, there are some significant differences.

For a company's stock issued during the IPO, it always represents a share of ownership in the enterprise. This is not in the ICO. Usually, the passwords you own are used only for voting on some projects, but they are often the only currency you can sell to other users or convert to another currency.

Another important difference is that the IPO is strictly controlled by the government. This requires an IPO company to prepare a large number of papers before issuing their shares. It also implies serious consequences in case of non-compliance with the law.

 In contrast, cryptocurrency crowdfunding is a new model, largely unaffected by government regulations. That means any project can launch an ICO at any time with very little preparation and anyone can participate in it and contribute their money regardless of their arrival. This free environment offers both opportunities and risks to any investor who wishes to participate.

Has there been a lot of successful ICO?

Mastercoin – an example of successful company that started an ICO project
Yes, there are many examples.

The first project kicked off an ICO was Mastercoin. It raised $ 5 million worth of Bitcoins in 2013 by selling their tokens. Many other companies have followed this model, such as Ethereum in 2014, or Waves in 2016, earning more than $ 18 million and $ 16 million, respectively.

ICO is an effective way to start crypto projects, provided that the product meets the needs, is transparent and has a solid team that ensures it grows well.

Bottom lines

The last thing I want to remind is that you should check the project information and try to assess the positive level in the future. Most of the projects have White Paper, which contains information as well as the development strategy of the project. Remember to invest wisely and be ahead of the market trend. I wish you all the luck!