ICO is an acronym of a rather difficult to translate into Polish phrase - Initial Coin Offer. Nonetheless, trying to find the best Polish equivalent of this abbreviation, we can be tempted to name this process the "original coin emission".
ICO is a source of social financing for startups (newly established enterprises or organizations that are on the lookout for their business model to provide more lucrative development) by collecting the assets from the market by using virtual tokens or newly created cryptocurrencies. It can hence be said that this is a still gaining popularity and modern method of crowdfunding (social financing).
Initial Coin Offering allows to raise funds for the realization of the project at the stage of a mere idea.
It is based mainly on a business model, written in a form of a multipage document, the so-called White Paper.
WhitePaper is an inseparable element of ICO. It is its business plan playing a role that can be compared to the role of prospectus in the case of shares. WP often contains the so-called roadmap, where we find a detailed range of future activities (realized in stages at a specific time), which in the future are designed to achieve an intended business goal.
In practice, the most common case is that someone has an idea to do business, but they do not have enough money to implement it. They create the ICO by emitting tokens from which they want to finance their idea and all their activities. Thanks to ICO, young enterprises and startups are able to collect the funds that were previously unreachable to them, often counted in millions of dollars!
If ICO creators want to sell their product, they must take appropriate steps and effectively "pack" it. Well designed in the terms of visual appearance websites, great marketing activities, or an earnestly prepared White Paper are the absolute foundations of effective activities in this area. They build the credibility of an entire project and transparency, which in turn has an impact on an increased confidence of potential investors.
The digital coins purchased in the ICO process should bring tangible benefits to their buyers in the future. Ultimately, most of the ICOs should find the proper cryptocurrency exchanges, on which all investors will have the opportunity to trade and thereby make money on their tokens.
It is worth highlighting that despite the fact that Initial Coin Offering is very popular, all issues connected with it are still not regulated by law in many countries in Europe and in the world (including Poland).
You will find more about the ICO and its technical aspects and considerations in the ICO News category. It contains interesting information about the world of digital assets, with special emphasis on the subject of Initial Coin Offering. These messages should be useful to everyone - regardless of their age or experience in this market.