There has been a lot of discussions about blockchain technology and Initial Coin Offering (ICO) lately, and a lot of industry observers are paying close attention to these new players in global market.
Crypto currency technology is rapidly gaining popularity in recent years because of constant usage, and ICO is commonly used for many blockchain-related funding campaigns.
ICO operates in a similar way to an IPO: investors invest funds and receive a “stake” in the company. The main difference is that ICO investor does not receive the real shares, but becomes the owner of cryptographic tokens, which are traded on crypto-exchanges for various crypto currency.
Strictly speaking, tokens are not tied to shares or to any other form of ownership. In this case, ICO has much in common with crowdfunding: in both cases, as a rule, funds are collected for the implementation of a certain concept – that is, at a stage when the company still does not have any product.
Today, ICO enjoyed the company of information technologies, start-ups and association of enthusiasts who, using ICO strive to attract investment and public interest in your product or idea.
Usually innovations and development are concentrated in the blockchain segment. The segment is new, therefore it provokes a developers “hysteria” and lot of attention from investors and observers. Naturally, by means of mass media simple everyman also gets its “portion” of information and recruits close monitoring ICO browsers.
ICO announced are already becoming predictable. Developers primarily develop the idea of previous opponents, but there are brilliant ideas that tend to collect the necessary funds to translate the project into reality. For example, Iconomi, Ethereum, Waves, Bancor and Polybius.
Therefore, ICO has become a new channel for investors to find perspective business ideas, and for companies to find investors. Drew attention to an interesting project: donation based crowdfunding program, which offers any individual sacrifice $ 3.00 per month for 3 years to build the largest aquarium in the world.
PAquarium is using ICO as mechanism for attracting investments for crowdfunded project. Using opportunities of ICO, PAquarium is involving investors by selling 20% of PAquarium operational profit.
When PAquarium will be ready, 20% of profit will be split between token holders annually. Investment will be covered by real estate and physical amusement park project. In parallel, the project is easily perceived and goes to mass with an innocent story about Plankton which has no home.
Therefore, it seems that such type of projects is the “new breath” for ICO, to dilute the blockchain segment.
If you want to find out more about ICOs and how to participate on Ethereum ICOs check the video below: