In 2017, the ICO market volume exceeded $ 3.7 billion. According to Coinshedule, the successful placement of its own crypto currency accounted for 234 projects, and the average check amounted to $ 15.7 million.
Initial Coin Offering (ICO) is the initial placement of tokens. Today, any startup can issue its own crypto currency, provide it with goods or services, and then sell it to investors.
Advantages of ICO
The idea described above is used in crowdfunding. And if you tie tokens not to the product, but to a share in the company - you get a classic venture. Those. well-known and standard financial instruments that have long been used.
The question arises - what is the advantage of ICO, and why has it become so popular?
There are two advantages: a developed secondary market and a block-system as a technology.