A new phenomenon is rising on the horizon of the financial markets. ICO has got the technical world in its grip, and it gradually changes the way to collect money for startup capital. IPO (Initial Stock Exchanges) falls under this new method, crowdfunding and venture capitalists also decline. Experts in the Forex industry predict that it will continue to grow up to a certain point – either a fundraising revolution or just another pyramid – we are looking to see the coming years.

ICO is very similar to the concept of IPO – both are processes for collecting capital for start-ups. The difference lies in the insurance of the investment. With ICO, investors get a cryptocoin backup, known as just “slant” or a “token”. This is the biggest difference with regard to the security of the investment. Crypto currencies still make their way into the financial markets, but they are gaining steady speed, so we can say that this strategy will last for a few years to come.

• Cryptovalent market capitalization for 2016

Bitcoin – $ 11.3 billion

Ethereum – $875 mln

Ripple – $288 mln

Litecoin – $ 183 million

Currency – $ 94 MUSD

700 + second – 606 mln

• Cryptovalent activations of 06. 2017

Bitcoin – $42,1 bln

Ethereum – $29,2 bln

Ripple – $10,2 bln

Litecoin – $2,1 bln

Ethereum Classic – $1,7 bln

700 + others – $ 18.6 bln

To sum up, Bitcoin is currently just under 50% of the total market share of cryptovalutors, although Bitcoin’s capitalization has jumped from $ 10 billion to over $ 40 billion last year. The crypto currency market on its own has risen from $ 12.5 billion to the outstanding $ 90 billion. With this pertussis growth, we can see more and more companies using ICO as the main tool for capital procurement. From spectate online sports games to regional banks, we are adopting the ICO method of the digital generation. And the only mandatory point is to offer a crypto currency as an integral part of the company’s product.

Let’s take a look at important details – Blockchains, Tokens and Cryptovalutors

• block Chain

Blockchains is an inexhaustible digital account. They are used for financial transactions with recording not only financial transactions but all aspects of value. It can be seen as a digital spreadsheet, duplicated over a large network of computers. The following networks are built to update the magazine on a regular basis. Because the shared information is stored in several different locations, it is considered to be truly open, and can easily be accessed by all users. The revolutionary factor lies in the accessibility of the spreadsheet. You do not trust a single database, an updated part of all of the people involved in the market. It’s fast, it’s reliable and access process simplifies for comfort for all traders and businesses.

• Tokens

Token’s coin, offered under a designated ICO. They can be regarded as equivalent shares purchased during a Stock Exchange. Another name for tokens is cryptocoins. They work equally to shares, but you risk losing your entire investment if the company is under. If crypto currencies continue to be part of the financial markets, ICO can be the next big thing to raise funds for a long time ahead.

• Kryptovalutor

A crypto currency is a digital / virtual currency that uses cryptography for security. Not as issued by a central authority makes it harder to reach by governments. They can hardly bother or manipulate the value with international transactions and laws. Also, by nature, all transactions are anonymous.

ICO – positive and negative

FXGM Encryption Experts suggest the following points to remember when setting an ICO:

Positive

• A large part of ICO-funded companies have found success and are now developing steadily.
• ROI (Return on Investment) factor plays a major role in return-seeking investors. With bigger profits comes greater risk, but everyone can make the mats on their own and decide.
• All tokens in ICO are considered liquid. You can cash out at any time.
• There are no fees for ICO investing.

negative

• ICOs are well known for failures when many projects use the same concept. They fail to reach the expected levels, so their tokens eventually reach the value zero.
• The absence of governments can lead to falling into a Ponzi system or a similar money pyramid.
• Prospects for profit are good if you invest in an illegal system. Assets that have been lost this way are rarely recycled.

Tell us what you think about ICO, we would like to share your experience with the subject!