{"id":1502,"date":"2021-03-23T12:55:51","date_gmt":"2021-03-23T11:55:51","guid":{"rendered":"http:\/\/szzccmv.cluster031.hosting.ovh.net\/?p=1502"},"modified":"2021-10-26T18:01:00","modified_gmt":"2021-10-26T16:01:00","slug":"icos-initial-coin-offering-s-2","status":"publish","type":"post","link":"https:\/\/n.world\/en\/icos-initial-coin-offering-s-2\/","title":{"rendered":"ICO\u2019s (Initial Coin Offering\/s)"},"content":{"rendered":"
Throughout the past year, Initial Coin Offerings<\/strong> (from now on ICO\u2019s<\/strong>) have been considered the gold rush of the 21st century. Millions of dollars have been raised by companies working with blockchain technology solutions, bypassing the entire financial industry without asking for permission. This new way of funding business has caught the attention of all the regulatory agencies over the world. But what exactly is an ICO? The ICO acronym translates to Initial Coin Offering, which goal is similar to any Initial Public Offerings with stocks. <\/span><\/p>\n T<\/span>he only problem is that all the money that is being raised does not comply with the existing regulatory framework. ICOs are the way for almost all blockchain ventures to find funding across the globe using cryptocurrencies or tokens<\/strong>. This phenomenon has disrupted the entire Venture Capitalist system, now people all over the world can contribute to the funding of a project that promises to deliver a cutting-edge blockchain application. <\/span><\/p>\n Recently, private investors (Hedge Funds and Business Angels among others) are welcoming the decentralization of the venture capitalist industry, which allows anyone across the globe to contribute to the projects they believe in. A company\/individual creates an ICO with two main goals:<\/strong><\/span><\/p>\n Normally, a team develops a smart contract that launches the token distribution<\/strong> once the sale\/payment is completed. Users contribute with the amount they wish to invest in and deposit it on the company’s address using cryptocurrencies. On the market, we typically see that the two main procedures for a token sale are the following: i) companies will either put a hard cap (Limit Amount of money they would like to raise) on the smart contract or ii) they will have an open cap (they will raise as much as people want to contribute to their project). <\/span><\/p>\n Some terms also introduce the concept of a soft cap<\/strong> (Minimum Amount of money needed to start development). In the case of not reaching such soft cap, the team will return all the contributions to the owner and will not proceed with the development of the project.<\/span><\/p>\n\n