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Get to know all the essentials of the Initial Coin Offering

Have you ever thought about what is the Initial Coin Offering? Why is everybody talking about it so often in the crypto world? To understand how are ICOs functioning, let’s get to know their exact definition, shall we?

Initial Coin Offering, or shortened “ICO,” is like Initial Public Offering (IPO) only in the crypto world. That’s why we call it the crypto equivalent to IPO. It is a well-known fundraising method that is primarily used by startups which are wishing to offer services and products that are related to blockchain and cryptocurrency space.

What is ICO Calendar?

Now that you know the basic definition of the Initial Coin Offering, we’d like to introduce you to one specific calendar. The ICO Calendar shows you the available tokens that are currently taking place or will take place in the space of cryptocurrency.

In this particular calendar, you will be able to see all upcoming and active Initial Coin Offerings that are happening on it.

Understanding the ICO functioning

All interested in investing can buy into the current offering and get a new cryptocurrency token that the company has issued. Keep in mind that this particular token may have some utility in using the service or a product that one company is offering. In addition to that, it may also represent a stake in the project or a company.

To understand the functioning of the Initial Coin Offering, let’s try to explain it through the following example. Once a crypto startup aims to raise money through an Initial Coin Offering, it most commonly creates a whitepaper that outlines what that specific project is about.

Besides that, this particular whitepaper includes information on the exact amount of virtual tokens that the founder gets to keep, how much time is needed for the project to be complete, how much money is required, what type of money will be accepted.

In the end, it also includes information about the approximate time of that particular Initial Coin Offering campaign. During that same campaign, supporters and enthusiasts of the project will purchase some of the project’s tokens with digital currency or fiat.

These particular coins are referred to the buyers as tokens and are very similar to shares of a company that has been sold to investors during the Initial Public Offering.

Therefore, if the raised money doesn’t meet the minimum funds required by the firm, the funds shall probably be returned to the backers. In this case, the ICO would be considered unsuccessful. On the other hand, in case the funding requirements are met on time, the raised money would be used to pursue the project’s goals.

The Bottom Line

In conclusion, it’s essential for investors looking to buy ICOs first to familiarize themselves with the space of cryptocurrency more broadly. In the case of most Initial Coin Offerings, investors should purchase tokens with pre-existing cryptocurrencies.

It means that the Initial Coin Offering investor should already possess a cryptocurrency wallet that will be set up for a specific currency and have a wallet that will be good enough to hold whichever currency or token they wish to purchase.

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