Despite the fact that there is severe market downturn nowadays, the ICOs had continued to remain popular option for small startups and also those larger companies to raise the funds. There are researches that points out to the fact that there has been the same kind of number of the Initial Coin Offerings in the first half of this year.
The statistics is actually pretty much impressive and they hide an overlooked truth that is not being taken into consideration by a lot of entrepreneurs and many companies looking to conduct an ICO.
There are many entrepreneurs and companies that conduct ICOs without understanding the risks of Initial Coin Offering. They only learn about it by reading articles and they are misled into believing that ICOs are easy alternative towards raising the capital. But in reality, ICO is not shortcut to avoid the time and the hard work necessary to be able to raise the capital. They demand for a lot of considerations and they can come with substantial risks as well. One of the very significant legal concern is where or not their token will fall under the securities laws. Read more claims about cryptocurrency, visit https://en.wikipedia.org/wiki/Retail_foreign_exchange_trading.
In reality, the ICOs are hard work to be pulled off. Anyone who actually boasts how easy it can be done is most likely very ignorant of the process of ICO and is doing something wrong about it. They have some half-baked idea with no real plan in mind to develop for viable product or services in the future. Know the ICO meaning here!
But the good thing about the blockchain ico is that you can have real access to the global pool funds. Since there is an inclusiveness and openness that is inherent to the ICO investment mechanism, the projects have the possibility on accessing the fund from all of the world and then capitalizing some of the wealth that the early crypto-market space has been able to make or create.
The generation of the initial users and the network effects is also another benefit of the ICO service. The token holder do usually get the rights to be able to participate or make use of the product or the service, making the company the first one to use. Since they all have invested into the token, and thus, the platform, they have the incentive to be able to make the network grow.
Lastly, the ICO service also promote inclusiveness. While those traditional investment have been reserved for the small percentage of the individuals, the ICO do allow anyone to participate as the investor in the early stage of the projects. Anyone can actually be part of the ICO regardless of the factors like the income level, or the connections, as well as the country or the residence.