Top 10 Frequently Asked Questions About ICO

top 10 ico questions answers

IPO stands for Initial Public Offering; whereas, ICO is Initial Coin Offering. With little difference of an alphabet in their names, both of them are serving the same purpose. Helping businesses to raise fund. Nowadays, on every other day a new ICO is being launched. Whether it’s a Blockchain for gaming economy or a Blockchain for VR and AR, cryptocurrency has made its mark in almost every top-notch industry.

Initial Coin Offering as an event, which is also widely referred as a Crowdsale, occurs when a startup or company releases its own cryptocurrency for the purpose of raising funds. The contributing organization releases its own crypto-tokens or token money and sells it against the fiat money or Bitcoins. As a consequence, the firm that hots an IPO gets the capital and the audience that participating in it get their shares in a form of cryptocurrency.

In fact, at the time of writing this article, around 90+ crowdfund and ICOs have lived around the world, each of them is unique and special in their own way. Here I am sharing 10 frequently asked questions (and answers) which will, hopefully, clarify some queries to the new and existing investors:

1.Why most new tokens are Ethereum ICOs?

  • Continuous development of Ethereum – The establishment of the Ethereum alliance, which is composed of more than 200+ member companies are capitalizing development resources to solve real-world problems using the world’s only smart-contract supporting Blockchain.
  • Liquidity – Ethereum is the 2nd largest Blockchain network in the world. Every token built on the Blockchain demands for Ether and liquidity to the network.
  • Scalability – The founder of the Ethereum, Vitalik Buterin along with his team working together to implement “Casper” that aims to make transactions more efficient.
  • 2.Are ICOs legal?

    Like how various industries have raised money in 2017 by launching an ICO than other traditional fund-raising, it seems like ICO won’t be any more restricted in a near future by the regulations.

    3.How do ICOs work?

    ICO is sort of fundraising event, where a company generates and sells digital tokens in exchange fiat currency from the public. Just like the IPO, the token represents a right of the holder that is varied from access to a specific application. The amount raised in an ICO is determined by the company issuing tokens.

    It’s a 3 week of procedure to launch an ICO, including the token development. However, the time differs based on the customization pre-sale and sale smart contracts. And yes, the above time frame does not include the time spent with PR, marketing and talking to pre-sale investors.

    4.What are the cost involved in an ICO?

    So many various costs are associated with the ICO. Apart from the cost of issuing tokens, businesses will be required to go through legal procedure and will be required to put efforts into marketing like, ETH purchases and other significant expenses.






    5.How are Crypto tokens redeemed?

    The token holder is required to contact the emitting company, who will then take the required steps for the token redemption.

    6.What happens if ICO didn’t reach its minimum CAP?

    In most cases the money is refunded into the investor’s account. However, in one of our projects, the client has decided to go on with the ICO token sale forever until the min cap is ultimately reached.

    7.What happens to the tokens which are left unsold?

    Only the sold token will be created and issued. For example, if the 40% of the tokens are sold in the first round, then only 40% will be generated, diminishing the total token pool from 1 billion to 900 million.

    8.How much does the ICO token or pre-sale token cost?

    It is determined on how much ether the company is focused on getting. Obviously, there will be an approximation as ether prices vary from time to time. The fund can be collected in any form of fiat currency, so the price may differ for sure. The pricing is more than a simple token rate/ETH.

    9.What happens if I don’t sell the smart?

    It is completely your choice, whatsoever you want to do with that token, as it’s an elastic document indeed. However, rolled has been the most common choice so far.

    10.What makes a “good” Token?

    Beyond having figured that out, what makes a good token, it is completely dependent on the team behind it, because it is required to execute, iterate and deliver accurately.

    Wrapping Up

    I hope, I have answered all the questions relevant to the ICO. Everything, pertaining to the development part is pretty much covered. However, there’s a more to the ICO, which I have mentioned in my previous blog. You will be required a whitepaper describing the in-detail business idea, a marketing strategy and technical execution to reach to the potential investors.

    ICO Development Services and Smart Contracts Development are what we’re working on at Bacancy Technology. In a very short time of a span, using our artistic expertise, we have successfully launched 5 ICOs.

    And, if you’re interested in launching your own ICO on the Ethereum Blockchain, we are a top-notch ICO development company and we are offering crypto token development services to the clients all around the globe so, head over here!






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    About the Author

    Chandresh Patel
    Chandresh Patel is a founder & M.D at Bacancy Technology. He is a founder of vision and mission of Bacancy Technology and constructed work ethics @bacancytech to achieve that vision and mission. He oversees Business development, day to day execution of strategic planning and he also looking after customer service delivery. Right now his main focus is on expanding his business globally and he is putting all his efforts to make his company known worldwide.

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