Advantages and Disadvantages of ICO .
Technology always moves upwards by holding advantages over one hand and disadvantages on the other . Not only technology , everything in this world is binded by both goods and evils in them. It is always with people side , that whether to hold useful or harmful hand to walk with technology.
ICO - A Short Intro :
ICO or Initial Coin Offering,is a fund raising method using cryptocurrencies.Crowdfunding is mostly followed,but now a days private ICO's are becoming more common.It is a process by which cryptocurrency is sold in the form of "Tokens" to investor,in exchange of other cryptocurrencies or legal tender.The legal state of ICO is mostly undefined. The token is sold not as a financial asset but as a digital good. This is why ICO is often called “crowd sale”.
Pros of ICO :
ICO has more pros over IPO . As ICO uses Token for its crowdsale , this made users to move towards tokens from cryptocoins. Let us have a look at the benefits of ICO .
Token Offering Concept :
ICO concept paved the way for the introduction of Tokens. In ICO , the issuers of ICO provides tokens or sells their tokens to investors for their fundraising.
This tokens are wrapped up the details about this ICO process. which will be explore the things about, what is the purpose of ICO ? , duration of ICO and other related things in encrypted formats . This provides a better knowledge to investors about ICO concerned.
Investors Coverage :
In IPO , there is no possibility of finding all interested investors , whereas in ICO moreover we can able to cover all interested investors so as to make ICO successful .
Cons of ICO :
Absence of Security Token :
As all ICO provides only utility tokens for investors , ICO is considered as less security in recent days. This is because of the invention of security tokens in the crypto world .
To know about all in details ,just read the blog :
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