ICO or initial coin offering is in the trend now. Just after the Cryptocurrencies, it is time for ICOs to change the financial market. It is indeed a great opportunity for all the investors across the globe, just the way Bitcoin and other Cryptocurrencies have.
Investors have become much more flexible now; they are ready to take the risk of investing in something new as long as it has the potential of offering higher ROI. That is why they are investing so much on Bitcoin with bitcoin era.
Just the way you are investing in Cryptocurrencies through a number of platforms like the bitcoin era, as it has a number of benefits, the scenario is almost similar for initial coin offerings as well.
Here, in this article, we will talk about the benefits of ICOs or initial coin offerings. Before that we know, you might like to have a brief understanding of what ICOs or initial coin offerings actually are.
What Is An Initial Coin Offering?
You can think of ICO with a number of parallels to an IPO for a stock. Crowd sales, token sales events, and ICOs let companies raise funds. By releasing Cryptocurrencies only to interested parties, companies raise funds in the form of new Crypto tokens.
Benefits Of Initial Coin Offering Options
Now you get a basic understanding of the ICOs; it is time to have a look at the major benefits that ICOs have to offer us. Knowing the benefits is crucial before you think about opting for one.
Benefit 1: Accessible To Everyone
The launching of ICOs differs from equity sales that too in a large scale initial public offering. Via the 1934 Security Exchange Act, ICOs always come with extensive regulations. We can think of a token launch as a sale of digital keys.
Only accredited investors, who have a net worth of more than $1 million, can participate in an ICO. At the same time, you can sell the tokens that are sold at an ICO or initial coin offerings. This becomes possible because most of the purchases are anonymous.
Benefit 2: Tokens Can Be Sold Globally
Investors from different parts of the globe are getting the opportunity to invest in coins due to ICOs. In many cases, digital currency transfers particularly into project coin offerings. Suppose the IPO account is receiving hundreds of wire transfers within a few minutes, the bank account will freeze the asset. On the other hand, token sales are paid in the form of Cryptocurrencies and are always open for operation.
Benefit 3: Tokens Economy Liquidity Premium
When tokens are being sold in an ICO, that particular number of tokens has particular values. In the entire marketplace across the globe, 24/7, this particular value is acceptable. When it comes to IPO, this varies drastically.
In IPOs, investors even need to wait for decades to become capable of exciting. However, tokens can really be sold in a few minutes. The token economy liquidity premium lets the shareholders take part in new ICOs with the same amount of funds as IPOs.
Benefit 4: Less Barrier To Entry
For a number of technology-driven IPOs, organizations flock to Silicon Valley. On the other hand, for comparative financial offerings, the actual place is Wall Street. But as the launches of tokens can be anywhere in the whole world, this specific requirement is majorly diminished. It does not matter wherever they are located; Successful companies are capable of raising funds through ICOs from whoever they want to.
Benefit 5: Instant Buy-In
No blocks or intermediaries exist between sellers and coin buyers. Once Cryptocurrency is developed and also launched on the Crypto market, it can immediately be sold. That means it is an efficient and fast process for both the businesses and for those who are investing in them.
With initial public offerings or IPOs, the specific process of buying stocks can only be elaborated as a labor-intensive process. While buying into an ICO is really simple. It is like getting the proper currency and waiting for your dinner.