What Exactly Is An Initial Coin Offering?
They’ve been around for centuries!
And smart investors have used them to make some serious gains for quite some time.
IPO’s (Initial Public Offerings) happen when a company wants to list on the stock exchange and offer their shares to the general public.
They’re heavily regulated, and in most cases offer a select group of investors to get into a stock very early.
But times have changed, things are moving, and technology has brought about an exciting development of late.
With the advent of cryptocurrencies, a new age type of IPO has been born, something I like to call the “21st Century IPO”.
I’m talking about ICO’s, or as they’re better known: Initial Coin Offerings.
At its simplest level, an ICO is essentially a crowdfunded offering of a new cryptocurrency that startup businesses use as a source of capital.
Investors can then buy these coins (or as they’re sometimes referred to as - tokens), either via legal tender or through the exchange of other crypto’s, such as Ethereum or even Bitcoin.
And as I’m sure you’ve seen, cryptocurrencies have exploded of late, they’re simply everywhere!
That means ICO’s have surged in popularity too.
In fact, ICO funding has totaled more than $3 billion to date!
With that popularity comes a whole bunch of new things, new ground to traverse - and as always, a whole bunch of risk!
So how are ICO’s different from IPO’s, why should you even partake in an ICO, and what are the risks?
Let me show you…
The Rise of The ICO