ICO has become a new revolutionary way to support startups on their way of development. Making money with the blockchain technology is now easy and available for everyone.
Money for startups
In one of our previous posts, we introduced ICO (Initial Coin Offering) as a process which can help startups using blockchain technology develop further. It’s an easy way to get hold of some extra money, essential for building a great company from scratch. ICO provides the opportunity to purchase cryptocurrency even before it hits the market, which gives us a very good price. Later we can sell it at a higher exchange rate and that’s how we make a profit.
How it actually works
A lot of current big cryptocurrencies started their journey into the market as a result of the ICO. Let’s take for example Ethereum – its crowdfunding began in 2014 and now it’s one of the main cryptocurrencies out there. The ICO helped to raise around 2,3 million dollars in the first 24 hours (!).
When you have a good startup project, you don’t really need much more, to be honest. A good plan is going to attract investors, that’s why ICO creates such good opportunities of growth. You just need to choose the platform for issuing tokens. The most challenging option is to create a new platform, like the one made for the Ethereum or the one that Ripple has launched. But using already existing blockchain technology is also a good idea because then you can be sure that everything will run smoothly.
Next, you should prepare a whitepaper, in which you can introduce your idea to others. Including details such as key points of the project, the expected budget that you need and so on. It will help other people to get inspired by your vision, which might make them want to invest in it.
ICO essentially makes profit to support your startup, but the benefits can actually be mutual. Investors are eager to buy tokens or coins through ICO because it gives them an opportunity to get high returns. ICO tokens created by a cryptocurrency exchange platform itself, are just the simplest, universal ones. Most digital assets bought this way are compatible with almost every cryptocurrency on the platform, which simplifies the trading experience. Therefore, it’s a win-win situation.
A software studio like ours is in the constant need for improvement. IT industry makes it quite hard to make it to the surface thus funding is very important. Moreover, we now have a chance to introduce some new people to our mission and show them why we do what we do. The world of the cryptocurrencies is very variable but gaining access to it is really not as hard as it may seem from the outside.
The parties funded by ICO are now a big part of the whole cryptocurrency market. They naturally have some influence on how the cryptocurrency exchange functions. As everyone can imagine, ICO attracts a lot of new people to the cryptocurrency world, because it’s an easy way to make money that startups need.
Profiting through ICO helps developing projects which otherwise wouldn’t stand a chance. The startup space is very crowded nowadays, which makes it hard to break through. But having necessary money certainly makes it easier, that’s why ICO might be an option to consider.
The influence on the market
One of the most important aspects of ICO is the real opportunity to influence the cryptocurrency market. By creating your own cryptocurrency or an exchange platform, you can easily do so. Our mission is to provide software solutions that make the use of blockchain safer and simpler. The knowledge that we have gained through the whole process of ICO, we now use to improve and develop our own platform. And that’s exactly what every software house out there can do themselves.
Plus, there is always a possibility of creating another Ethereum by accident. And that would turn the cryptocurrency market upside down once again.