What is ICO? Everything you need to know worldfree4u.site

 What is ICO? Everything you need to know worldfree4u.site

The first thing to know about ICOs is that they are no longer called ICOs. You may remember the mania-filled days of 2017, when projects with little more than a whitepaper raised over a million dollars in less than a day with an initial coin offering - ICO. Some of these ICOs turned out to be outright scams, while others were legal, and the funds raised helped launch some of the most successful blockchain projects.

Blockchain technology now safely facilitates investing outside of traditional capital markets. Crypto tokens promote capital accumulation and provide incentives on blockchain networks. Token sale has become an integral part of the cryptoeconomic ecosystem and how projects become known.


ICO history

Bitcoin was the world's first cryptocurrency to emerge in 2010 through the ghostly figure of Satoshi Nakamoto. As the white paper flew around the crowds of technocrats and entrepreneurs, the world realized that this new use of decentralized technology could open up countless innovations that could serve as a new foundation for the world's financial infrastructure. The most outstanding functionality at the time was Bitcoin's ability to create an inherently digital currency that operated beyond sovereign reach. If Bitcoin could be used to stimulate activity on the network and therefore preserve intrinsic value, then this model could be replicated.

How token sales work

In theory, you can tokenize anything that has value - stocks, bonds, art, gold. The launch of a token and the idea of ​​tokenizing something can be implemented in different ways.

Utility tokens are created to perform a specific function or provide a feature. For example, on the Ethereum network, ether is used as a gas to pay for transactions and computing power for programs using the Ethereum blockchain. Think of these utility tokens as cryptocurrency commodities. When launching a utility token, you need to understand one thing in order not to trigger securities laws: the token does not represent a share in the project. As a result, they have no real intrinsic value and no legal protection. They have value when used in conjunction with a specific technology.

Key findings

The token sale has been one of the most important innovations in the cryptocurrency sector. The ease with which entrepreneurs can launch tokens to obtain funding over the Internet significantly reduces barriers to accessing capital.

In recent years, token sales combined with regulatory changes have lowered the barriers to investing in startups, and we are seeing non-blockchain native projects using token models to innovate their industry. The token sale makes our financial system global, open and more liquid.