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ICOs and how they operate

SourceOriginal
#1
What Are ICOs?

ICOs or Initial Coin Offerings are basically crowd sales, the cryptocurrency version of crowdfunding. The ICOs have been truly revolutionary and have managed to accomplish amazing tasks:
  • They have provided the simplest path by which DAPP developers can get the required funding for their project.
  • Anyone can become invested in a project they are interested in by purchasing the tokens of that particular DAPP and become a part of the project themselves. (We are talking about Work Tokens here).
So, how does an ICO work?
Firstly, the developer issues a limited amount of tokens. By keeping a limited amount of tokens they are ensuring that the tokens itself have a value and the ICO has a goal to aim for. The tokens can either have a static pre-determined price or it may increase or decrease depending on how the crowd sale is going.
The transaction is a pretty simple one. If someone wants to buy the tokens they send a particular amount of ether to the crowd-sale address. When the contract acknowledges that this transaction is done, they receive their corresponding amount of tokens. Since everything on Ethereum is decentralized, an ICO is considered a success if it is properly well-distributed and a majority of its chunk is not owned by one entity.
[img=865x0]https://blockgeeks.com/wp-content/uploads/2019/05/howanicoworks-1.jpg[/img]
The recently concluded EOS ICO which raised a whopping 4 billion dollars in a year is till date the biggest ICO ever.
Also, as TechCrunch points out, ICOs delivered at least 3.5x more capital to blockchain startups than Venture Capitals since 2017
Reply
#2
(11-19-2019 03:43 AM)Valstar Wrote: What Are ICOs?

ICOs or Initial Coin Offerings are basically crowd sales, the cryptocurrency version of crowdfunding. The ICOs have been truly revolutionary and have managed to accomplish amazing tasks:
  • They have provided the simplest path by which DAPP developers can get the required funding for their project.
  • Anyone can become invested in a project they are interested in by purchasing the tokens of that particular DAPP and become a part of the project themselves. (We are talking about Work Tokens here).
So, how does an ICO work?
Firstly, the developer issues a limited amount of tokens. By keeping a limited amount of tokens they are ensuring that the tokens itself have a value and the ICO has a goal to aim for. The tokens can either have a static pre-determined price or it may increase or decrease depending on how the crowd sale is going.
The transaction is a pretty simple one. If someone wants to buy the tokens they send a particular amount of ether to the crowd-sale address. When the contract acknowledges that this transaction is done, they receive their corresponding amount of tokens. Since everything on Ethereum is decentralized, an ICO is considered a success if it is properly well-distributed and a majority of its chunk is not owned by one entity.
[img=865x0]https://blockgeeks.com/wp-content/uploads/2019/05/howanicoworks-1.jpg[/img]
The recently concluded EOS ICO which raised a whopping 4 billion dollars in a year is till date the biggest ICO ever.
Also, as TechCrunch points out, ICOs delivered at least 3.5x more capital to blockchain startups than Venture Capitals since 2017
Reply
#3
(11-19-2019 03:43 AM)Valstar Wrote: What Are ICOs?

ICOs or Initial Coin Offerings are basically crowd sales, the cryptocurrency version of crowdfunding. The ICOs have been truly revolutionary and have managed to accomplish amazing tasks:
  • They have provided the simplest path by which DAPP developers can get the required funding for their project.
  • Anyone can become invested in a project they are interested in by purchasing the tokens of that particular DAPP and become a part of the project themselves. (We are talking about Work Tokens here).
So, how does an ICO work?
Firstly, the developer issues a limited amount of tokens. By keeping a limited amount of tokens they are ensuring that the tokens itself have a value and the ICO has a goal to aim for. The tokens can either have a static pre-determined price or it may increase or decrease depending on how the crowd sale is going.
The transaction is a pretty simple one. If someone wants to buy the tokens they send a particular amount of ether to the crowd-sale address. When the contract acknowledges that this transaction is done, they receive their corresponding amount of tokens. Since everything on Ethereum is decentralized, an ICO is considered a success if it is properly well-distributed and a majority of its chunk is not owned by one entity.
[img=865x0]https://blockgeeks.com/wp-content/uploads/2019/05/howanicoworks-1.jpg[/img]
The recently concluded EOS ICO which raised a whopping 4 billion dollars in a year is till date the biggest ICO ever.
Also, as TechCrunch points out, ICOs delivered at least 3.5x more capital to blockchain startups than Venture Capitals since 2017
Reply