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What’s ICO

ICO (Initial Coin Offering) is a commonly used way to raise funds for cryptocurrency or blockchain project. Early participants can obtain the cryptocurrency generated from the Genesis Block as a return. ICO is the outcome of the international cryptocurrency and blockchain communities, which serve to raise enough operating funds for blockchain developers. Most of the ICO funds are in the form of Bitcoin or other cryptocurrency.

ICO will generally be processed before the completion of the blockchain project. It helps the project raise money, to cover the cost of the project from its establishment to project issuing. For some large block-chain projects, some extra funds will be left in store to ensure project’s sustainable development, among which includes the initial allocation model of tokens.

ICO participants are very important to the success of a project. They will promote the blockchain project in a community, to make the tokens achieve liquidity before the trading. However, what ICO participants value most is the potential benefits generated from price appreciation due to project development and token issuing.


The differences between ICO and IPO

IPO(Initial Public Offering) is the first sale of a corporation’s common shares to public investors. Compared with ICO, IPO shares some common points as well as some differences with ICO.

Common points

・Raising capital by selling new shares.
・Investors may venture to take part in them for big potential benefits.

Differences

・Most supporters of the ICO are the members who have interest in the project and the investors who are unprofessional.
・There is no need to register licenses for ICO .
・The platform of ICO is a neutral third party, the investors use it at their own risk.

At present, ICO is a kind of pattern that is similar to the software pre-sale token. We are more likely to call ICO an online crowdfunding for fear of the law accountability. ICO makes governments take notice for the event of The DAO in 2016. Until now, The DAO is the biggest crowdfunding project which has gathered about $15 million. However, The DAO is hacked after it loudly proclaimed that the age of the Smart Contract is coming a month later. This event made a huge mess immediately,then The DAO was investigated by SEC( Securities and Exchange Commission).


What is Token

Token is a kind of Cryptocurrency that generated by blockchain, which can be used as a medium of exchange in the circulation and settlement of the blockchain community. And this is the most common application mode in the whole blockchain commercialization. The main tokens are application token,equity token,credit token. Among of them, the application token ICO comes the earliest, which is currently the most widely used token of ICO. BTC and ETH are also belongs to this kind of application token.


The historical development of ICO

July, 2013

Mastercoin(renamed as OMNI)is one of the first blockchain projects of ICO, it raised 5000BTC successfully at the Bitcointalk Forum. Based on the Bitcorn, Mastercoin is aimed at helping the users create and make trades with cryptocurrency and other smart contracts.

December, 2013

NXT is the first totally POS blockchain, it raised 21 BTC(about$6000). Since one hundred million dollars is its highest market value, undoubtedly, NXT is one of the most successful ICO project for the investors.

2013-2014

A large amount of successful blockchain projects activated ICO during this period, the price of these tokens had gone crazy at one time. Unluckily, some ICO projects broke down in the hype, and others end up with a fraud. However, there were also some successful ICO projects during these time, the Ethereum is a good example.

July, 2014

Ethereum(ETH)is one of the biggest ICO projects up to now, which enjoys the high-popularity both in China and abroad. Ethereum raised more than 180 million dollars, which is a kind of Cryptocurrency and holds the highest market value except Bitcoin.

March, 2015

Factom is a kind of ICO that based on the Koinify platform. Based on the blockchain technology of Bitcoin, Factom renovates the data management and the data record format used by the new commercial community and the government.

March, 2016

The application of the decentralization(DAPPs) for Lisk is a kind of program that used the Javascript. Javascript is the simplest as well as the most fashionable programming language. This time, Lisk raised 14, 080 BTC and over 80 million XCR in total. After Ethereum, the amount received from the crowdfunding is the second biggest among the blockchain projects of ICO.

May, 2016

he DAO is the biggest crowdfunding project of ICO, its stock of financing reaches up to 160 million dollars. Decentralized Autonomous Organization(DAO) is similar to a corporate entity controlled by computer code, which is the first time in history. As an eye-catching ICO project, The DAO was hacked and became controversial. Finally, The DAO dissolved and ended by returning Ether.

September, 2016

FirstBlood combines the e-sports competition with blockchain together, using the smart contract to solve the problem of the reward structure. At first, the FirstBlood raised$6,000,000, and 465,312,999ETH.


How to participate in ICO?

ICO BANK is a third-party crowdfunding services platform, which does not belong to the supporter or the sponsor of the project. All of its investments are belong to the user. The user can take part in this platform at their own risk.

Through the platform, the sponsors can raise money, and gather users requirement to gain important users. Moreover, the sponsors promise to provide returns to the supporters. The supporters may find or support reliable project, and receive the promised returns through the ICO BANK platform.

At present, ICO BANK mainly raises fund in Bitcoin, which will offer the registered user the exclusive Bitcoin address.

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