Also known as token generation events (TGEs), initial coin offerings (ICOs) are disrupting the traditional investment ecosystem. Early seed fundraising has been completely changed by blockchain technology.
Through an ICO, businesses and startups raise the capital they need by issuing tokens. Crypto tokens are tradable and fungible.
At a first glimpse, they may look like cryptocurrencies, but their uniqueness is driven by what they represent. There are two popular types of tokens used by ICOs – utility and equity tokens.
Utility tokens, or app coins, provide future access to products or services. It is an opportunity for a business to raise capital, and use the funds to develop a blockchain-based project.
The term ICO has been on the lips of all investors and entrepreneurs throughout 2017. On the one hand, it is a lucrative ways for innovative companies to raise capital. Read more from coinspeaker.com…
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