DETROIT – Have you ever thought about what is the Initial Coin Offering? Why are people in the blockchain industry getting so much interested in them? Before we answer these questions, let’s explain what it all means, shall we?

First of all, Initial Coin Offering, or ICO, represents the cryptocurrency industry’s equivalent to an IPO, Initial Public Offering. One corporation or a company that is looking to raise money to launch a new app, service, or a coin will launch the Initial Coin Offering to raise funds.

We are talking about one of the essential fundraising methods that many startups from all over the world are using for offering blockchain space and crypto-related products and services.

Investors who are interested in ICOs can buy into the offering and receive a new cryptocurrency token.

What is an ICO Calendar?

The ICO calendar shows all the current coin offerings that are or will take place in the cryptocurrency space. Anyone interested in knowing more about the present ICOs can review all upcoming and active offerings in this kind of calendar.

The role of an ICO calendar is to help its visitors to stay on top of the newest digital currencies and latest trends. Therefore anyone who observes them can stay ahead of the curve and achieve significant profits in the most recent future.

The great majority of coin growths is happening right after their Initial Coin Offerings completes, and the launch begins.

Two main ICO types – Private and Public

It’s crucial to understand that there are two different main types of initial coin offerings. One is the Private ICO, and the other one is the Public. Speaking of the Private ICO, it’s mandatory to remember that they are available only to members of a specific community.

Private ICOs are known to target groups and individuals with compelling capital at their disposal. Keep in mind that there is always some eliminating factor for private ICOs and that they are generally regarded as more secure.

On the other hand, the Public ICO is open to everyone. It’s a crowdfunding method that developers use to launch new crypto projects and coins. As the crypto world is making progress, this particular type of ICO is gaining popularity.

However, due to many scams and lack of regulation, numerous investors have been dealing with issues with the Public Initial Coin Offerings at the moment.

How ICO works precisely?

Once any of the cryptocurrency startups are aiming to raise money through an Initial Coin Offering, most often, it creates a white paper that includes all of the following information:

  • What is the project about
  • The need the project will fulfill upon completion
  • The exact amount of money that is necessary
  • How many virtual tokens the founders will be able to keep
  • What kind of money will be accepted
  • A period of the time that the ICO campaign will run.

While the Initial Coin Offering campaign runs, all the supporters and enthusiasts would purchase some of the project’s digital or fiat currency. These particular tokens are very similar to shares of a company that investors bought during an Initial Public Offering.

If the raised money doesn’t meet the minimum funds required, all that money could be returned to the backers. Promptly, the ICO would be deemed unsuccessful. On the other hand, if all the funding requirements are met within the specified timeframe, the raised funds will be used to pursue the project’s goals.

This article was provided by Melissa Garcia