Further info on ICO and what are they? At this
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Posted On: 01/08/2018 9:24:10 AM
Further info on ICO and what are they?
At this point in time, ICOs have been used in two ways. In the first scenario, a limited number of so-called "altcoins" are traded for legal tender or cryptocurrency, like Bitcoin or Ether. Each time a coin is bought, it further drives up their value. Investors are hoping as many coins are bought as possible and the company thrives, in the hopes of selling the coins later.
In this way, the coins seem to function as regular stock. However, they have an extra advantage, which is that they allow entrepreneurs to cast a much wider net in their search for investment, and not to be limited to traditional financing.
Going beyond crowdfunding
Furthermore, unlike crowdfunding, ownership of these assets especially incentivizes investors to spread the word about the company, in order to increase the value. At the moment, these investors largely come from within the cryptocurrency community.
(we are well beyond and will be beyond the CC community when this happens)
The exact nature of the coins may vary depending on the company. ICOs may offer a limited number of coins, or make the coins only last over a set period.
(wonder if Hjoe will actually limit the amount of coins available..I mean..it would only seem fitting with the short issue.)
The other function, which may be termed "utility tokens" or "coins," are traded specifically on business platforms. Investors may use these tokens to purchase the company's goods or services, or retain the coins, in the hope that they will grow in value. Companies benefit from such an economy: retaining coins increases their value by lowering the number on the market, further driving up their value.
Sorry I just had to highlight these areas because it just seems way to good to be true...BUT IT IS!!!! haha
At this point in time, ICOs have been used in two ways. In the first scenario, a limited number of so-called "altcoins" are traded for legal tender or cryptocurrency, like Bitcoin or Ether. Each time a coin is bought, it further drives up their value. Investors are hoping as many coins are bought as possible and the company thrives, in the hopes of selling the coins later.
In this way, the coins seem to function as regular stock. However, they have an extra advantage, which is that they allow entrepreneurs to cast a much wider net in their search for investment, and not to be limited to traditional financing.
Going beyond crowdfunding
Furthermore, unlike crowdfunding, ownership of these assets especially incentivizes investors to spread the word about the company, in order to increase the value. At the moment, these investors largely come from within the cryptocurrency community.
(we are well beyond and will be beyond the CC community when this happens)
The exact nature of the coins may vary depending on the company. ICOs may offer a limited number of coins, or make the coins only last over a set period.
(wonder if Hjoe will actually limit the amount of coins available..I mean..it would only seem fitting with the short issue.)
The other function, which may be termed "utility tokens" or "coins," are traded specifically on business platforms. Investors may use these tokens to purchase the company's goods or services, or retain the coins, in the hope that they will grow in value. Companies benefit from such an economy: retaining coins increases their value by lowering the number on the market, further driving up their value.
Sorry I just had to highlight these areas because it just seems way to good to be true...BUT IT IS!!!! haha
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