Crypto Consulting Group

What are ICO's?


What are ICOs?

 
 
 
 
  Image courtesy of  Shutterstock

Image courtesy of Shutterstock

Initial coin offerings are a new way for start-ups to fund their applications. Developers pre-sell tokens that power their applications in exchange for funding, in the form of ether (ETH) or bitcoin (BTC). They are introduced with white papers which are essentially business plans. The white paper explain the functions, team, goals, protocol and anything else that would be beneficial to someone wanting to invest. ICO's have become a popular investment because of the tremendous upside. In 2014, when the Ethereum ICO launched, tokens were selling for as low as $0.40 and 18 million was raised. However, they are still unregulated. Investors should do their homework before participating. If developers don't complete the program or it's a scam, then you're just out of your investment. Also, an influx of new ICO's without realistic target caps are flooding the blockchain and locking up millions in ETH. The most recent ICO for Bancor, an Ethereum based DApp, only needed 3 hours to raise over 150 million in ETH. You can see upcoming ICO's on our Calendar, here.

Below are some examples of Ether tokens that had ICOs: