In the market of cryptocurrency and blockchain technologies, Cryptocurrency ICO (Initial Coin Offering) is the initial placement of coins (tokens). ICO technology is very similar to IPO (primary placing of shares on the stock markets). The main difference and advantage of an ICO prior to the IPO, is that, it is available to ordinary people. Just by purchasing tokens (coins) of the project, anyone can become a shareholder in the project whose idea is necessary for thousands of people and thus the coin’s value will increase tenfold.
When a company issues shares for sale, it’s not always obvious what to do to buy them. At the same time, you only need to have the means in one of the popular cryptocurrency BTC or ETH, in order to become a holder of the token (crypto coin). On the Internet, there are various exchangers where you can buy them for Fiat currency. However, most reliable ICO projects have the option of accepting payments to Bank accounts.
The project management usually distributes the released cryptocurrency proportionally at the end of the investment period amongst investors. In most cases, these “digital promotion” can be used in the project or to be a source of profit from the share capital. With rare exception, the real stock-holders of these coins will be able to get % of profit from activities of the project.
Value of the crypto coins depends on the development of the project. In normal situations, if the company develops well, investors get a huge profit; if not, then the parties ICO does not receive anything except for the e-coins, or even suffer losses in case of devaluation of the token-ICO to zero. However, experienced investors can make money out of this and with time, the experience teaches them.
The project usually releases its currency on third party platforms, after completion of the ICO. Obtained in the course of participation in the ICO, coins can be resold at a higher price on specialized exchanges or receive dividends loat the end of the year.
Bounty is another way to capitalize on the ICO’s part in it. No it’s not a chocolate, and not the island, the ship or the Bay. Bounty is an incentive reward for participating. So, if you have the skills of promotion in social networks, on YouTube, or run a blog, you could participate in the bounty of the company and on its results to a certain number of tokens as payment for your efforts. Interesting and realistic ideas have the ability to give good profit to the holders of coins.