ICO stands for initial Coin Offering; it is a modern and unregulated way of raising funds for different cryptocurrency ventures. It is an easy way to bypass the rigors of the capital raising process of the Banks, and other financial bodies require. During ICO offering, a certain percentage of cryptocurrency is sold to the backers of the project for other legal tender or other cryptocurrencies.
What to do before the Initial coin offering
Before any ico launch or raising money using the ICO method, it is vital that you draw out a plan which should contain the details of the project, this includes what the project is about, the needs of the project and the aim of the project and the objective upon completion. It should state clearly the amount of money required to fund the entire venture. Also, the kind of currency you will accept and the time frame should also be included in the plan.
During the Initial Coin Offering or campaign, the enthusiasts and supporters will buy the cryptocoins using fiat or virtual currency. The coins are also called tokens and are similar to the shares of the company that are usually sold to investors during IPOs. The investors are motivated with a handsome reward for buying the crypto-coin.
ICOs is likened to IPOs and crowdfunding, like the IPOs, it requires s that startup companies sell stakes to come up with the funds necessary for the operation of such a company. The difference is that IPOs deal with investors while ICOs work with supporters who are keen about starting new projects like the crowdfunding event. However, in ICO, supporters are expected to receive a high return on their investment while in crowdfunding, funds contributed are donations. This is why ICOS is referred to as crowd sales.
ICO Switzerland is growing on a regular basis without any threat. Switzerland is one among many to embrace blockchain, which is a big surprise to many given its status as the global leader regarding cross-border private banking.