Most of the companies that enter the ICO will not meet the expectations of investors, experts say. How to evaluate a project that decided to release tokens, and choose one that does not bury the investment? The ICO (Initial Coin Offering) market is even more dangerous than the venture capital, experts warn. But, despite this, ICO is gaining popularity. According to the agency Smith + Crown, only in 2016, $ 102 million was attracted to the ICO. Experts do not undertake to accurately estimate the amount of funds raised in 2017, but the amount has obviously increased at times.
During the "gold rush" the main profits were distributed between sellers of shovels, picks and wheelbarrows. During the boom placements on digital exchanges - those who serve this infrastructure. Russians are among the leaders of this segment of the market.
ICO (Initial Coin Offerings) - Internet analogue of IPO: instead of shares of the company, tokens are issued - digital tokens. The release occurs on a specialized block-platform, for example Waves or Ethereum. Blocking is a chain of transactions built according to certain rules. Information in the chains can be rechecked, but can not be changed. Investors - platform users - buy tokens, paying for them with crypto currency - bitcoins or ethers, for example. Anyone can raise funds using ICO - the main thing is that the concept is liked by users. The value of the tokens is not guaranteed by anyone other than the company that issued them.
Initial Coin Offering - the initial placement of coins (tokens). During the ICO, the project team sells digital tokens for crypto-currencies or fiat money to investors. Later, these coins can be used on the project platform as an internal currency or trade them on exchanges. Also, instead of ICO, the term "crowdsdale" (English - crowdsale) is often used.