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3 Major Reasons Why Popular Crypto Startups prefer ICOs Instead of IPOs

14 Sep, 2018
Why ICO

Almost every technology forum, financial institute, and business organization is giving importance to Blockchain and ICO. Thousands of websites have already become home to articles about Blockchain. A lot of them are also discussing blockchain’s application in various fields and the value this form of technology adds to businesses and relevant processes. But what about ICO? What are its forms? How does it work? There are plenty of questions that need to be answered in this regard. Only a reputed ICO marketing company can answer them correctly.

What is ICO?

ICO stands for Initial Coin Offering. This popular Cryptocurrency trend is somewhat similar to IPO (Initial Public Offering). ICO marketing companies call it a fundraising mechanism used by Cryptocurrency ventures for selling their underlying crypto tokens in exchange for Bitcoin or Ethereum. In simple words, investors/participants get some ICO tokens in exchange for their participation in ventures.

What is an ICO Token?

An ICO token is actually a symbol that highlights your contribution to some startup investment. It is something that really does not exist, but still has a value equal to gold in the market. Therefore, the more you invest in crypto startups, the more tokens you get to avail company services in future. If needed, you can sell them too!

But, why would you like to invest in a company that does not offer you anything in return? For example:

1) Partnership in company
2) Services to avail in future
3) Shares in company

When this is something all investors in IPOs get. In ICO’s this purpose is served by ICO Smart Contracts.

What is the ICO Smart Contract Concept?

Your ICO marketing campaign gains trust among potential investors with Smart Contract! Yes! You are reading absolutely right! It is an agreement signed between a token holder and an ICO issuing company. A Smart Contract contains a full set of terms and conditions thoroughly detailed for a token holder as well as the ICO issuing company.

What Are the Types of ICOs?

ICOs are according to the pricing methods used in the token sale. There are various types of ICO tokens. For example:

1) Security Tokens
2) Utility Tokens
3) Asset Tokens
4) Reputation and Reward Tokens

An ICO marketing company is the best medium to learn about making the most of these ICO tokens.

Why Do Crypto Startups Prefer ICOs?

Full Control:

Entrepreneurs now want full control of their business. They don’t want to give business control to their investors. This is why they prefer selling them future services in the form of ICOs. In this way, they get money and also retain full control of their business. They don’t have to worry about investors’ decision or choice before or while taking any decision. Since they keep full control over their business and relevant processes, they get the independence they need to grow their business.

Globalization:

This is another reason. ICOs ensure participation/investment by the people from all parts of the world. They don’t have to knock every door at the local level and convince people to invest in their crypto startup.

No Regulation:

That’s right! There is no regulatory authority to procrastinate any process at any level to make your crypto business venture a yesterday’s news. Business owners can take any decision and execute it immediately.

How DO ICOs Work?

This is what ICO marketing companies advise investors to understand.

1) It is entirely a systematic process that is imitated with the production of a whitepaper describing all technical specifications and the use of ICO listings.
2) An ICO model or a roadmap is generated. The purpose of this ICO model/roadmap to achieve business growth and generate revenue.
3) A couple of experts put their heads together who propose an economically inexpensive and profitable project based on Blockchain technology. But this dream turns becomes reality only through ICOs. This is where ICO marketing becomes indispensable.
4) Now the working prototype of the whole project is produced. At times, no active prototype is produced.
5) Now the whole process of aggressive ICO marketing begins in the form of campaigns.
6) The companies then explain all the terms and conditions related to their upcoming token sale to the public to understand. For example:

– The number of tokens available for distribution
– The price and utility of every token
– The Amount of targeted fund every project is to raise

7) Then ICOs are launched, and coins are distributed as per participation in the sale.
8) Finally, tokens are released for the purpose of trading on the exchanges.

This whole process is not so difficult or time-consuming. This is mainly why crypto business ventures in their early days prefer ICOs instead of IPOs. But this initiative profits their business with the help of some reputed ICO marketing tactics executed to perfection and on time.

But the whole process of ICO marketing is time-consuming and complex in many ways. This is why most of them look for the firms capable of carrying this task effectively.

Why don’t you try us? We could possibly be the best ICO marketing company you are looking for your crypto startup. The Choice is yours!

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