ICO Consulting

Initial Coin Offerings, also known as ICOs is the cryptocurrency version of crowdfunding and are a part of the crypto world that is most likely here to stay. It’s one of the easiest and most efficient methods for companies and individuals to fund their projects and for regular users to invest in projects they see value in. An Initial Coin Offering is an event that usually extends over a period of one week or more and in which everyone is allowed to purchase newly issued tokens in exchange for established cryptocurrencies like Bitcoin (BTC) or Ether (ETH). In an ICO, there can be a specific goal or limit for project funding, meaning that every token will have a pre-designated price that will not change during the Initial Coin Offering period, which also means that the token supply is static. It is also possible to have a static supply with a dynamic funding goal, in which the distribution of tokens will be made according to the funds received, meaning that the more funds the project receives the higher the token price will be. You can also have a dynamic token supply that will be determined by a number of funds that are received, meaning that the price for each token is static (e.g 1 ETH – 1 token) but every time one Ether is sent a new token is created. A limit can be set in terms of goals or time frame. Crypto Currency is the Future

CREATING A COIN FOR YOUR COMPANY

If you hang out in cryptocurrency circles, you’re used to hearing conventional wisdom being questioned. After all, the sector was born out of the idea that orthodox economics is bunk. From there, there’s nowhere to go but up. It’s no wonder Initial Public Offerings are being rethought. They’re too bound up in regulation, too late in a company’s life-cycle and too expensive to pull off to be really useful for a startup. They’re a great way of returning capital to investors, but not for funding your blockchain-based business idea. Enter the ICO. They’re essentially crowdfunding campaigns for cryptocurrency startups, these days almost always based on the Ethereum platform – a bitcoin spinoff which lets users build distributed businesses all plugged into the same blockchain. The startup’s developer sets the currency up so that a significant batch of initial coins are allocated to them, which they then auction off to investors who want to get in on the ground floor. Often the only chance of a return is if the value of the coins goes up, but with the examples of bitcoin (increase in value over the past 12 months: 410%) and Ethereum (increase in value: 4,000%) behind them, a lot of investors are prepared to speculate. If the platform takes off, those coins are going to rise in value, and they can cash in. Some startups take a more complex route, and offer tokens that guarantee the holder a share of the return on the platform – in effect, cryptographically guaranteed equity. A dark web market, for instance, can fairly easily charge transaction fees, which are automatically split amongst the holders of its equity tokens.

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