What is ICO
We are living in the blessed digital era. First, we got a digital watch, then digital photo, digital TV, digital marketing and digital sex. The world was ready for digital currency and Bitcoin was born. So, no surprise that in a very short time digital stock has joined the party.
ICO (Initial Coin Offering) is pretty close to the well-established IPO (Initial Public Offering) with two major differences:
- You are not going to own a share in a future company.
- It must be somehow connected to a blockchain.
Why will a startup company prefer ICO?
The concept is relatively new, and the old IPO might look safer, but some ICO benefits are just unbeatable:
- Retaining control: you are not sharing your company with an investor, you sell him a future service. That’s a huge difference, you will get the money but still control your business.
- Globalization: while some companies go door to door to find an investor, with ico rating you can immediately rise money from anybody in any country worldwide.
- No regulation. That means no bureaucracy which could take months. Tech startup success is very much a matter of being first on the market. Otherwise you will be yesterday’s news and somebody else will take the jackpot.