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First of all I will say initial coin offering is more or less like an IPO.Initial coin offering is actually a crypto terminology which is use to describe when a cryptocurrency want to go public so as to gain more awareness and also to raise funds ICO is actually a way to raise and make funds but despite the fact that you can easily raise funds from ICO,you also need to be careful at the same time as this may back fire if you don't truly have the knowledge .or awareness on how ICO works.so let's take a brief look on how ICO works
HOW DOES INITIAL COIN OFFERING (ICO) WORKS .
The crypto world is becoming very popular and it's attractive lots of investment,there are thousands of cryptos out there so when a crypto organizations decide to have an initial coin offering (ICO) certain this such as the date of announcement and the rules that guide tbe company must be put in place.the essence of this is that it enables the buyers and investors of the cryptocurrencys to know the date in which that crypto company is going into ICO so that they buy or invest on the crypto Although most of this ICO requires buyers and investors to pay in other cryptocurrencys which could be in any form of the cryptocurrencys depending on the choice of the company.
A wallet is usually made available in which the buyer or the investor can send the payment for the crypto they are buying or investing in .
THERE ARE VARIOUS WAYS INITIAL COIN OFFERING (ICO) WORKS
One of the ways ICO works is that most times there is usually specific amount crypto and amount attached to it,this are usually done ahead of the time or the day the cryptocurrencys is going ICO.so it means a specific amount of token has a particular price attached to it.
Another way is that the token can be of specific amount while the price attached to it varies.this is usually done based on the amount of funds available or received from the company.
Launching an ICO is not very hard even an unknown token can decide to go into initially coin offering,this is the process by which new crypto get money and awareness
STARTING AN ICO
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As I have earlier said starting an ICO is not something difficult the only thing need I s you getting the date of your ICO ready and before the date of the ICO you must have had a cryptocurrency which everybody is viaing to an they are willing to support.so for you as a company to go into ICO you must have a website,a marketing campaign strategy,your social media presence must be high, i.e your crypto company is well recognize and your white paper detailing how you intend to go about your project and what you intend to achieve.so with all of this in place then you can start thinking of going into intial coin offering.
DIFFERENCE BETWEEN ICO AND IPO
Most of the the time people mistaken ICO to be the same as IPO.there is a wide difference between them.while an IPO involves selling of securities and they much regulated but in the case of ICO,it deals specifically with cryptocurrencys and does not require any government permission to go public although both are meant to generate more money for the company and they also both have their risk attached to it.
ADVANTAGES AND DISADVANTAGE OF INITIAL COIN OFFERING (ICO)
Initial coin offering (ICO) has it advantages and disadvantage
1 it helps the company to generate money only if you know the right cryptocurrencys to invest in.the prices are usually low when you are buying and you sell when the prices are high.
2 Initial coin offering is accessible to anyone.it has no restrictions or regulations compared to IPO and it is very efficient in raising start up funds.
The main disadvantage of ICO is that you can loose all your cryptocurrency and money.crypto being very volatile is on predictable and as a result of this if the coin fails to rise you will be loss and not all token are worth investing in as some could just be mere joke.
So to go into ICO you must have through knowledge of the coming you are buying or investing in.
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