ICO – this brief initial proposal Coin. When you start a new cryptocurrency or crypto token developers offer investors a limited number of units in exchange for other large crypto-coins, such as Bitcoin or Ethereum.
ICO with the & # 39 are countries with a tool for easy rain funds for development to support the new cryptocurrency. Tokens proposed during ICO, can be sold and traded on the stock exchanges cryptocurrency, provided that they have enough demand.
ICO Ethereum – one of the most notable successes and the popularity of the initial coin supply increases when we are talking about.
A Brief History of ICO
Ripple, probably the first cryptocurrency, distributed through ICO. In early 2013 Ripple Ripple Labs began developing and created around 100 billion XRP token payment system. They were sold through the ICO to finance Ripple development platform.
Mastercoin – is another cryptocurrency, sell a few million tokens for Bitcoin time ICO, also in 2013. Mastercoin directed to tokenization Bitcoin transactions and perform smart contracts, creating a new layer on top of the existing Bitcoin code.
Of course, there are other cryptocurrency successfully financed through ICO. Back in 2016 Lisk has collected about $ 5 million at the time of its original proposal coins.
However, ICO Ethereum, which took place in 2014, probably with the & # 39 is best known until now. During the ICO Foundation Ethereum ETH sold for 0.0005 each Bitcoin, collecting nearly $ 20 million. With Ethereum, who uses the power of intelligent contracts, he opened the way for the next generation of the initial monetary proposals.
Ethereum ICO – a recipe for success
Smart contracts Ethereum system implemented ERC20 standard protocol, which establishes the basic rules for creating other compatible tokens that can be performed on blokcheyne Ethereum. This allowed others to create their own tokens, ERC20 appropriate standard to be traded on the ETH directly to Ethereum network.
DAO – a notable example of the successful use of intelligent contracts Ethereum. Investment ETH collected $ 100 million, and investors received in exchange DAO brand, allowing them to participate in the platform management. Unfortunately, DAO failed after cracking.
ICO Ethereum and ERC20 protocol outlined the latest generation of projects based on the crowdfunding-based blokcheyna by initial proposals coins.
It is also possible to easily invest in other ERC20 markers. You just pass the ETH, put a contract in her purse, and new tokens will appear in your account so you can use it as you like.
Obviously, not all tokens have cryptocurrency ERC20, living in Ethereum network, but almost any new project based on blockchain, can begin the initial proposal of coins.
The legal status of ICO
When it comes to the legality of ICO, then it is a little jungle. Theoretically, tokens are sold as digital goods, not financial assets. Most jurisdictions do not regulate the ICO, but on condition that the founders have an experienced lawyer of his team, the whole process should be paperless.
However, some jurisdictions have become known ICO and are already working on their regulation in the same way the sale of shares and securities.
Back in December 2017 with the Securities and Exchange Commission (SEC) has classified the brand ICO as securities. In other words, the SEC is preparing to stop the ICO, which they consider ghostly investors.
There are some cases where a marker – it's only utility. This means that the owner can simply use it to access to a specific network or protocol, and in this case they can not be identified financial security. However, shares of labeling, the purpose of which is & # 39 valuation, quite close to the concept of security. In truth, most of the purchases of tokens is specifically for investment purposes.
Despite the efforts of regulators, ICO is still trapped in a legal gray area, and it is not a clear set of rules will be introduced, entrepreneurs will try to take advantage of the initial proposals of coins.
It should also be noted that, as soon as the rules to achieve the final shape, the cost and effort required to implement them, can make ICO less attractive compared to conventional financing options.
At the moment, ICO remains a strange way of financing new crypto-projects, and there were several successful.
However, keep in mind that all of today unveiled ICO, and many of these projects with the & # 39 are scams or do not have a solid foundation, so that they can thrive and make it worth the investment. For this reason, you absolutely must hold a thorough investigation and research team and the background of all those kryptapraektav in which you might want to invest. There are several websites that list the ICO, and we recommend that you check the calendar ICO, if you are interested. invest in kryptapraekt.