An Initial Coin Offering (ICO) is recognized as fundraising. In the ICO, an individual has to issue tokens for funding the development of a project. Tokens will be called as utility tokens.
Cryptocurrency is a finance-related word which has on the lips of most people. You have to know about cryptocurrency completely before heading towards the ICO.
However, the ICO is highly risky because there are huge chances of scams in the ICO.
Why Choose ICO
- If you have an XYZ company
- You want a new cryptocurrency
- The name of the new cryptocurrency is LittleCoin
- You want a huge amount of money to develop the new cryptocurrency
- You can approach either banks or venture capitalists (VCs) to help you
- You can choose ICO
How ICO Works
- You have to make a document called whitepaper. You have to describe this event on the whitepaper. You must explain why it is a great idea and how the idea will be very useful.
- You have to make a website as well
- The investors will give you money in a hope that LittleCoin will be increased in value
- You have to give them tokens in returns
- You will not have to provide shares of the company to investors in ICO
Important Things To Know About ICO
- All people involved in your team must have deep understandings of cryptocurrency and blockchain.
- The availability of your programmers and leads for handling ICO related questions is a must
- You should have the ability to give answers in no time
- You should do introspection whether your business will make profits from an ICO
- You can do a consultation on whether to jump into this business.
*How is your LittleCoin a unique from other cryptocurrencies? What can it offer to customers which were never offered before by other cryptocurrencies?