What is an ICO in Cryptocurrency?


The ICO is short for providing First Aid. By introducing new crypto currencies or crypto-tokens, manufacturers offer sellers less units in exchange for other major crypto currencies such as Bitcoin or Ethereum.

ICOs are amazing tools for the rapid collapse of development funds to support new investments. Tokens issued during ICOs can be traded and traded on cryptocurrency exchanges, assuming there is a need for more.

Ethereum ICO is one of the most successful and the popularity of First Financial Offerings is growing as we speak.

Brief history of ICOs

Ripple is probably the first cryptocurrency distributed through ICO. In early 2013, Ripple Labs began developing the Ripple payment system and generated approximately 100 billion XRP tokens. These were sold through the ICO to help repair the platform for Ripple.

Mastercoin is another cryptocurrency that has sold several million Bitcoin tokens during the ICO, as well as in 2013. Mastercoin seeks to streamline Bitcoin transactions and make smart contracts by creating a new component on top of the existing Bitcoin number.

Obviously, there are some cryptocurrencies that have been well received through ICOs. Back in 2016, Lisk raised about $ 5 million during the First Offerings.

However, the Ethereum ICO that took place in 2014 is probably the most popular to date. Among their ICOs, the Ethereum Foundation sold an ETH of 0.0005 Bitcoin each, raising about $ 20 million. With Ethereum using the power of smart contracts, it paved the way for the next generation of Initial Financial Offerings.

Ethereum ICO, a successful solution

Ethereum’s smart machines have developed a standard ERC20 protocol that sets out the rules for making other valid tokens that can be executed on Ethereum blockchain. This allowed others to create their own tokens, compliant with the ERC20 standard that could be sold by ETH directly on the Ethereum network.

DAO is a clear example of the effective use of Ethereum’s smart contracts. The investment company raised $ 100 million for ETH and the investors received in exchange for the DAOs allowing them to participate in the management of the platform. Sadly, the DAO failed after it was stolen.

Ethereum ICO and their ERC20 protocol have reported the recent birth of blockchain programs through Initial Coin Offerings.

It also made it easier to invest in other ERC20 tokens. Once you transfer ETH, put the connection in your wallet and these new tokens will be displayed in your account so you can use them as you wish.

Of course, not all cryptocurrencies have ERC20 tokens located on the Ethereum network but any new project that can create a blockchain can launch the First Offer.

ICO legal country

In the case of ICO legitimacy, it’s a bit of a jungle out there. In theory, tokens are sold as digital assets, not assets. Many authorities did not oversee ICOs, however, considering that the founders had a well-known lawyer in their community, all of this should not be undocumented.

However, some jurisdictions have identified ICOs and are working to improve the situation in the sale of securities and securities.

Back in December 2017, the US Securities And Exchange Commission (SEC) listed ICO tokens as shares. In other words, the SEC was planning to suspend ICOs that it deems to be fraudulent.

There are some cases in which the signal is simply helpful. This means that the owner can only use the network or some other software which may not be defined as financial security. However, equity tokens whose purpose is to appreciate value are very close to the idea of ​​security. Truth be told, most letter purchases are made primarily for financial purposes.

Despite the efforts of regulators, ICOs would still remain in the gray area and even after establishing clear rules traders have tried to profit from the First Financial Offerings.

It is also worth noting that once the rules come in the final form, the cost and effort required to comply could make ICOs less attractive compared to the methods in which funds are selected.

Concluding remarks

In the meantime, ICOs remain an amazing way to fund a new crypto-related project and there have been a number of successful developments in the future.

However, keep in mind that everyone is launching ICOs today and most of these projects are fraudulent or do not have a solid foundation that would be needed to grow well and make them financially viable. For these reasons, you should thoroughly research and research the team and the history of any crypto project that you would like to include. There are many websites out there that register ICOs, just search on Google and you will find some options.