Still relatively recently, bitkoyn was not perceived as something serious. But more recently, bitkoyne has crossed the ten-thousandth line and set new price records, no one is laughing at the strength of the crypto currency. But there were times when people bought pizza for these very bitkoy people, which, incidentally, limited all their value. But those times have long ago sunk into oblivion and now we have dozens of crypto-currencies with turnover of hundreds of thousands of green. And the new ones appear like mushrooms after the rain. In this world, crypto currency is important to understand what ICO is, and just about it we will now talk with you.
ICO in Russian stands for “initial coin placement”.
In its essence, it resembles an initial public offering and is considered the best way to start appearing crypto currency. This is a tool to attract investment. It is based on the exchange of the green currency with its counterparts. That is, for example, you give your bitkoyny, in return receive any new super-koins. A distinctive feature of the ICO is its unregulated, but we’ll talk about this a little later.
Coins received in this way are like digital coupons that correspond to one or another entry in the blockroom. They are easy to exchange, but they do not give you ownership, as is the case with shares. The decisive factor here is the rise in prices, because investors invest their money in them not because of the “idea”, but in the hope of quick and high profits. And, not all crypto-currencies with ICO have their own system of blocking. For example, some ICOs offer something like meta-tokens based on other systems.
So sometimes ICO is a circulation of crypto-currency, based on crypto-currencies and receiving funds due to exchange for other currencies. And it becomes incredibly popular, as we are told by the figures: ICO invests hundreds of millions of dollars (107 million for this year alone). It is difficult to underestimate such indicators of investment. There is nothing surprising in the fact that with such fabulous amounts there was a place for unscrupulous people engaged in machinations.
And the saddest thing is that there is no need to count on any kind of protection of one’s rights. The fact is that ICO is served as a pre-sale of tokens on the software, reminiscent of something early access to online games. Many ICOs today are trying in every possible way to evade legal responsibility, hiding under the slogans of the fieldworking companies. On the one hand, in the absence of regulation there are advantages: thus, the market can develop faster. However, investors have to be very careful not to become victims of scammers.
Despite the overwhelming success of the broadcast, many are predicting an early death for the ICO market, considering it a big technical bubble. But one thing is clear right now: while bitkoyn is going to beat all the new records, new altokemes will inevitably appear, trying to get money from investors and bite off their piece of cake. And it is worth investing in this venture or not depends solely on how risky you are, since ICO is for the most part the same kind of fundfounding associated with the corresponding risks.