A Short Guide of Initial Coin Offering or Token Sales

As the trend of Cryptocurrency is getting popular likewise the model of Initial Coin offering or token sales proving fine concept to raise the fund for the Blockchain based projects. If we look some successful ICOs, then with $ 2.0 billion DAOstack is the most successful cryptocurrency till date and the present market of token sale is $6.3 Billion and in future the market will grow at exponential rate. Despite a lot of popularity, term initial coin offering is still new to many people and they are not aware about it. So in this post we are introducing a short guide of initial coin offering or token sale.

What are token sales?
Simply put, Token sales are the source of capital for Blockchain startups and many reputed ICO listing websites providing ICO calendar to investors where they can check the ICO rating of a particular Token and can invest on those ICOs. Via initial coin offering the Blockchain companies raise the fund for their projects. Investors, whether corporate or individual can invest their money in the startup company usually by means of cryptocurrencies like Bitcoin and Ethereum as a part of an ICO. In return they get a percentage of the project or company- specific cryptocurrency being sold in the project.

The advantage of token sale:
For example, the price of Ethereum was approximately between 0.46– 0.61 $ in 2014 and now while writing this post its value is $ 466.67. So if you would have participated in Ethereum ICO with say $ 100, today July 6, 2018 you would have plenty of money. Apart from that following are the technical advantages of ICO.
• It is transparent; anyone in the Blockchain can see how the funds are being spent.
• Less complicated than traditional fund raising project for the Blockchain based project.
• In some cases, it is highly rewarding.