An ICO “initial coin offering” is a way by which a startup raises money for a new cryptocurrency venture. Startups normally use ICO to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, but usually for Bitcoin.
During the ICO campaign, enthusiasts and supporters of the firm’s initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it
White paper
When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering, it usually creates a plan on a whitepaper. This states what the project is about, what needs the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for.
ICO: Ethereum's success story.
In 2014, the Ethereum project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion. In 2017 for the first time in the technology's short history, blockchain entrepreneurs are now raising more money through initial coin offerings (ICOs) than traditional venture capital investments. So far in 2017, blockchain entrepreneurs have raised $327m through ICO offerings, a figure that now exceeds the $295m raised through VC funding, according to CoinDesk data.
The biggest advantage of Ethereum, however, is the ability to create applications on top of the technology as well as having smart contracts. Smart contracts are essentially contracts or terms that are written in code. They are computerised transactions that self-executes when the terms in the contract are met or not met; they also have an Ethereum address. The most widely-used form of smart contracts is in ICOs.
Cryptogene ICO
The Cryptogene project is to provide blockchain-based solutions, targeted especially for African countries. It aims at a multi-platform hub that supports cross-border learning, usage, and development of blockchain tools for individual and organizational goals. The budget goal is to raise a maximum of $2.5 million USD and a minimum of $1 million USD. There'll be a total of 50,000,000 CGT issued. Out of which 25,000,000 would be sold during the ICO phase. You can read the white paper here
The ICO started on the 24th of September and will last for 60 days. So don't miss out on the next big thing. You need to get a waves wallet and pay through the Bot.
