An Initial Coin Offering, or ICO, can be understood by comparing it to an Initial Public Offering, or IPO. An IPO is released by a company in order to sell a portion of its shares. When the price increases, those that buy shares can choose to sell them. Generally speaking, it can be a profitable engagement for both parties involved.
An ICO is very similar, in that it is a crowd-funding method in the world of cryptocurrencies. During an Initial Coin Offering, there’s an exchange of ICO tokens or ICO tokens. When a company wants to launch its own ICO coin or dApp, it releases an ICO in exchange for cryptocurrencies, usually Bitcoin or Ether. This allows the company to raise funds for its new venture.
Unlike an IPO, an Initial Coin Offering does not provide authority or ownership of the project to investors. The ICO tokens or coins given aren’t necessarily cryptocurrencies, but can be any utility, often times a stake. If the ICO is for a cryptocurrency, the cryptocurrency can be sold by investors later.
How Does An ICO/Initial Coin Offering Work?
Firstly, an ICO can use a platform such as Ethereum that allows DApps to be built on itself via smart contracts. The company releases an ICO with a stipulated amount of ICO tokens – in this case, more than likely Ether or any new token created by a dApp. Interested investors interact with the dApp, and exchange cryptocurrency for ICO tokens, thus raising funds for the project.
Many marketing strategies have been designed to advertise an upcoming ICO. Unfortunately, there have been countless scams and frauds happening with the ICO scene. Often times those who organize the ICO will do something called a “rugpull”, which is effectively taking the money and running following the ICO.
With so many scams, it is the responsibility of the investor to study the ICO closely before investing – This is done through whitepapers.
ICO Initial Coin Offering Whitepaper
An ICO whitepaper is a document that provides information about an ICO project. These are both legal and technical documents, that provide information on the purpose of the project, the reasons capital is required, and how the funds will be used.
Usually, the whitepaper will give information on the creators of the project, their background, and already existing inventors. Ultimately, a whitepaper serves as a way to give creators credibility and also give investors insight and confidence about a project.
Protecting Your Cryptocurrency
Cryptocurrency and the blockchain stand to be a major driving factor in the technology of the future. However this popularity has attracted an element of cybercrime. There are several tools internet users should use to increase their online protection. One of these tools is SaferNet.
SaferNet is the perfect solution to the cybersecurity issues that individuals, families, and businesses face today. It not only connects every device using a secure, 24/7 always on, military grade VPN, but it also stops outside cyberthreats, malware and viruses as well. On SaferNet, all users are protected anywhere in the world, all the time, on any cellular or Wi-Fi network. In addition to SaferNet’s VPN and cyber protection, it also offers a range of employee or parental/family internet controls including internet filtering, monitoring, scheduling, and blocking access to websites or even entire website categories
Typically, a user would need 3 separate services for a VPN, Malware Protection, and Internet Controls; SaferNet offers all 3 features in one service. SaferNet truly is an endpoint security presence that can be implemented in minutes around the world, on phones, laptops, tablets, and computers at an economical price point that caters to all internet users. SaferNet guarantees a smooth setup and installation process that takes only minutes, and an easily accessible control hub for you to monitor all your employee’s or family members devices; including activity, time spent online, and threats blocked.