If you are looking for the biggest trend in cryptocurrencies, the ICO will be a good start for you. The idea of selling crypto tokens, or Blockchain's project token, was a remarkably successful tool to raise money for a new project.
What is the initial coin offering?
ICO is initial Coin Offering. It means that someone offers investors a new cryptocurrency in exchange for Bitcoin or Ethereum. Since 2013, ICO was mainly used to finance the development of new cryptocurrencies and their new blockchain tehnology. Selling and replacing the pre-created coins is simple on every crypto exchange if there is a demand for them.
Because of the success of ETH ICO, more and more project are asking to be financed for future development in this way. Because of this, ICO has become not only a currency price advance and cheap purchasing tool but has the ability to completely replace Crowdfundig as we know it today.
A brief history of the initial coin offering
The first cryptocurrency funded by ICO was Ripple. In early 2013, Ripple laboratories have begun to develop a known payment system known as Ripple and have created about 100 billion XRP tokens. With earnings from ICO, Ripple became a reality.
Of course, the most successful ICO which we have seen is Ethereum - in the middle of 2014, Ethereum Foundation sold one ETH for 0.0005 bitcoin. By doing so they received almost 20 million dollars, which became the biggest crowdfunding and the basis for the development of the Etherieum.
Since Ethereum has proven the advantages of smart contracts, he has opened a new generation of original quotes and today we can say that the Ethereum Platform has become the best way to collect funds for starters.
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