ICO 101: A beginner’s guide to raising capital using cryptocurrencies
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Loading... - Penka Mehmed
- 27 Jan 2023
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An initial coin offering (ICO) is a way to raise capital for your project by selling blockchain-based digital assets.
Imagine you have a brilliant idea for a new blockchain startup. Perhaps you want to build the world’s first decentralized computer on the blockchain, which can be used to create native digital assets and develop decentralized applications. Users of the network will transact using tokens, which are digital assets created using your blockchain (and the nifty decentralized applications you can build on top).
Seems like a pretty good idea. But, like any startup, you need to raise some capital first.
For a traditional startup, your options are to either: raise a seed round from private investors, pitch a venture capital fund (or a hundred of them, most likely), or attempt a crowdfunding using a crowdfunding platform.
With your blockchain startup, however, you have another option: Why not raise capital by selling the tokens the network will eventually use? As the network grows, meaning that the tokens become more in-demand, their value will rise and reward investors. This method of raising capital is an ICO. Read More…
