Initial Coin Offering (ICO) Development
ICO is aimed to attract a large number of investors and to raise a certain amount of money. Similar to an IPO, ICO offers Cryptocurrency in place of shares in the interest to raise capital for the growth and expansion of the company. People subscribing ICO are called early investor and not shareholders.
The Cryptocurrency development company first need to come up with a business plan that includes –
- Project Summary,
- Purpose of Project,
- Project Completion Benefits,
- Minimum Amount Required,
- Duration of ICO Campaign, etc.
Based on these things, interested people/investors buy some crypto coins known as “Tokens”. These “tokens” are similar to “shares” in an IPO. At the end of the campaign, if the minimum amount required to start the project is raised, the capital is used for the project. If the capital raised within the specified time period is insufficient, the money is returned to the investors or “token holders”.
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