The procedure of fundraising in ICOs

Initial Coin Offering is a recent venture by cryptocurrency in order to raise funds. The start-up firms are utilizing the ICO to a great extent presently. They do so just to avoid the process of collecting capital to a demanding extent mainly by banks and also capitalists. The backers of early times of a project can purchase only a part of the cryptocurrency in exchange for another cryptocurrency mainly Bitcoin or legal tenders. Initial Coin Offering is often referred to the name Initial Public Coin Offering.

Any start-up in need of raising money and does so with the help of ICO needs to initially plot a plan and put down every detail on a paper mentioning the overview of the project, the result the project will deliver on completion and the complete price structure of the project. Moreover, there should be a clear declaration about the amount of money the project owners will keep aside and which specific type of money will be accepted. There should be a clear description of the time factor as to how long will this campaign last. The supporters of a particular start-up come forward to purchase crypto coins in exchange for fiat currencies. The crytocoins are same as the firm’s shares as bought by the investors in any transaction of the Lending ICO. These coins are generally known as tokens around the globe. There are situations when the funds raised through ICO by the backers are not enough the money is reversed back and Initial Coin Offering is declared to be unsuccessful. The money raised is generally used in two different ways, firstly to start a new scheme or secondly to finish an already initiated scheme. But it is important to receive the money in time within the mentioned timeframe.

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