What is an ICO

Author:

Blockgeeks

Keywords:

what is an ico?,what is crypto?,what is cryptocurrency?,crypto,cryptocurrency,eth,ether,ethereum,how to run an ico,how to start an ico,bitcoin,btc,whitepaper,what is a whitepaper,blockchain,decentralized,smart contract,solidity,xrp,ripple,fundraising,business fundraising,crypto regulations,blockgeeks,blockgeeks.com,initial coin offering,ethereum tokens,erc20,erc721

Subtitles:
when initial coin offering started they revolutionized the concept of public funding and crowd sales because they were largely unregulated icos allowed companies to raise millions of dollars from the public without any red tape if you could sell your coin in your vision to the world then you could raise money now things have slowed down a bit regulatory bodies are keeping an eye on the space and are even beginning to prosecute some icos that are particularly egregious and running afoul of the law in this guide we're gonna cover what an ICO is how they work and what some of the biggest problems are as we said earlier an ICO is a way for a project to publicly fund their work they create a token or a cryptocurrency that's needed for their goal and they sell a portion of it to the public to continue or begin work on a project so people essentially purchase a token that doesn't necessarily do much yet but comes backed by a team of a certain pedigree as well as some hopefully detailed technical plans one of the key aspects of running a successful ICO came to be the white paper a white paper is meant to be a marketing tool and to generate hype but they're also supposed to actually discuss what the project intends to do and how they'll do it it's not uncommon for white papers to be dense with math theories and flowcharts once the marketing cycle has put the project out there and the tokens have been generated the sale can begin often the tokens are sold in exchange for a more established crypto currency like Bitcoin or aetherium that way the developers are able to sell portions of their sales and fund their efforts using this blueprint I cos raise more than 20 billion dollars in 2018 alone while this is a great way for small projects to find funding from like-minded and passionate people you may have already seen where the problem lies ICS basically require nothing to begin selling to be totally fair there have been many valid and successful icos that have developed and are developing very useful technology however that doesn't change the fact that all you really need to start an IC o---- sale is a website and some tokens this has led to many many scams as bad actors generate fake teams flashy websites and worthless tokens in the hopes of fooling people looking for the next big thing there is practically no oversight or accountability if I wrote a convincing enough white paper and made a nice enough website I could potentially raise millions without having any intention to following through with my project and the people that paid me would have next to no hope of getting their money back this highlights the importance in the cryptocurrency space doing your best to research everything that you get involved with and try to make informed decisions if you aren't totally confident it's probably best to err on the side of caution once you've given your Bitcoin or aetherium to a project there's no recourse for you if it turns out that the project you thought you were backing isn't real so be careful research teams think critically about if what you're backing is valuable or possible and look after your own security first all in all the ICL world has been something akin to the Wild West with a complete lack of regulation you can find both amazing success stories and equally spectacular failures [Music]

Loading