What is an ICO? How does it work? What are the Essential Benefits of an ICO?

1. What is an ICO? How does it work? What are the Essential Benefits of an ICO? An ICO or an Initial Coin Offering is a method by which a business peg up its economic value by the way of fundraising. An ICO is a Cryptocurrency token that enables investors to store money in the Crypto pool and help companies to raise funds. An ICO is more or like an IPO, by which traditional investors put up money in the investment rounds and help the seeking companies raise their business practices. Thus, just like this, an ICO pegs up the Cryptocurrency enthusiasts in a decentralized acquisition. If you acquire an asset, it naturally doesn’t mean that an ICO investment can surely get you a higher return on your investment. But it’s totally depended on the share amount and coin value that an investor gains. If the coin is traded high in the exchange then your money will also peg up and if the coin is trading submerged then your investment will also submerge. This is why it is said that you need to be careful if you want to raise money through ICO investment.

2. So, if you want to raise funds through ICO you need to learn all the details of ICO tokens carefully. But, how does an ICO token work? And what are the benefits of an ICO? If you are not having answers to these questions then you must read through the next sections. Advantages of an Initial Coin Offerings

3. Users can take advantage of the following key things if they want to gain proficiency through ICO: Anyone Can Buy Tokens Tokens can be bought by anyone from a trading application like Zebpay, WazirX, Binance and more. Thus a trading exchange can list any coin proficiently and with detail, only you need to constitute the transactions as per your understanding and needs. If you want to buy ICO tokens, you can buy them very efficiently from here. Tokens Can be Sold Globally If you want to sell your ICO token, you can sell them globally and without any complications. So, tokens are helpful for users to peg up their wealth very efficiently. Tokens can be sold to any user without any problem as the seller just have to release the acquired amount back to the pool. The buyer can buy the coin with efficiency at any time. Token Economy Liquidity Premium When a token is sold it has a value in the market which is open 24/7. This is a global marketplace for Crypto exchange. The exit-capable equity in an IPO is not

4. possible in short term. Whereas, an ICO can be sold within minutes. Also, you will gain higher returns immediately using an ICO, but to gain returns in IPO can take time. By using the token economy liquidity premium “shareholders” can participate in new ICOs with the same funds. Less Barrier to Entry Wall Street is the place to be for many financial offering IPOs, and Silicon Valley is the place for technology-driven IPOs. But tokens can be launched anywhere in the world, therefore the need is diminished. A successful entity can raise funds through ICO from wherever they are situated and from whoever they want. This is why the barriers to entry in the Cryptosphere is less than geographic area. Even Ethereum is not present physically anywhere in the world. How Does an ICO work? To raise money through an ICO, the creation of a whitepaper is needed because it outlines the project's whereabouts. It also lists the need the project will fulfill after completion of the project, the requirement of money to be included in the project. It also lists how many virtual tokens the founders will keep, the type of money accepted and the time needed to complete the ICO campaign.

5. While the ICO campaign is going on, the supporters and enthusiasts will buy some of the project Cryptocurrencies with fiat currency. These coins are known to buyers as tokens similar to the share of the company sold to investors during an IPO. Here, if the company raises money and still does not meet the required funds, then the money will return to the investors. At this point, the ICO will become unsuccessful. The money will be raised to users who will pursue the project’s goal if the funding requirements are met within the given time frame. Conclusion If you are looking for the top ICO development company, then Awapal Solutions offers blockchain-related services such as ico, cryptocurrency, exchange, stablecoin development and many more. ICOs are modern and creative when you seek business funding. There are potential downsides of Initial Coin Offerings when the ICOs fail, but the advantages of ICOs are endless. ICO’s are the perfect crowdfunding method as they can provide potential returns from passionate investors. Blog Reference Url:https://medium.com/@awapalsolution/what-is-an- ico-how-does-it-work-what-are-the-essential-benefits-of-an-ico-37ff87a3940a