In 2013, the Ethereum network brought initial coin offerings (ICOs) into the limelight. ICOs are a relatively new method to collect funds for new startups by using digital coins.
According to CoinTelegraph, when Ethereum held its ICO, in just about 12 hours, 7.4 million ETH were pre-sold, and Vitalik Buterin, Ethereum’s founder, ended up raising more than $15 million to start the project. This was not the world’s first ICO, but it was the one that sparked the ICO revolution.
Why Initial Coin Offerings Roundups For Startup Fundraising?
In an initial public offering (IPO), a startup has to list its shares on public exchanges, and funds collected from the sale of shares provide the company with the funding. With an ICO, however, the company gives investors not shares, but crypto tokens that can be later used or traded.
IPO has geographical boundaries, while anyone across the globe can leverage ICOs. Moreover, unlike companies gathering funds through IPOs, successful ICOs focus on building communities and also allow extensive two-way communication between the company and investors.
Initial Coin Offerings In 2018
Since the start of 2018, we have seen some outstanding ICO roundups. ICO funding in 2018 Q1 surpassed the total 2017s ICO funding that was approximately $4 billion. In Q1 2018, the funding reached the $6.3 billion mark, which was 118% higher than that of 2017.
The largest ICO funding went to EOS, a blockchain platform that raised $4.1 billion in June, and Telegram with $850 million in March.
Moreover, a June 2018 PwC report says that ICOs will continue to pass the traditional venture capital funding, especially when it comes to the blockchain and technology-related startups.
To learn more on why initial coin offerings are a revolutionary way to get funded, check out the infographic below. It will take you through the history of ICOs, markets, trends, market news, legal battles of ICO, top ICOs, and everything that you need to know about the subject.
Infographic URL: https://btxchange.io/ico-
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