ICO, or initial coin offerings, are the hottest way today to crowdfund a project based on blockchain technology with simply a sell-written sales pitch. The beginnings of ICO came with the rise in use of digital currency. Companies soon began raising millions in the matter of hours. To display the rise of ICOs in the crowdfunding front, here are some figures from Crunchbase:

Mastercoin – $5 million, 2013

Ethereum – $18 million, 2014

  • Filecoin -$257 million, 2017

 

EOS – $4 billion, 2018

According to Coindesk,ICOs earned $295 million in 2014-16, while in 2017 they earned for $1.3 billion for their respective companies. As of June 2018, ICOs have raised over $9 billion. They’re raising funds faster than any traditional mode of sales—IPOs and venture capitalists—which contributed greatly to its popularity. It is decentralized and free of the legal tenders issued by governments—that is, tangible currency.The digital tokens are simply a representative amount of money—neither tangible assets nor company shares are involved. It is anonymous as well—transactions are identified only by unique wallet IDs.

ICO schedules are now displayed on websites such asCoinschedule, CyberFund and ICO List, with the names of the campaigns, taglines, token prices and deadlines for the crowdsale. A large number of forums now exist to monitor the performance of such crowdsales and offer investing advice, should a new investor want to begin their foray into the ICO business. With blockchain technology being developed for financial services and cryptocurrency, it only looks to grow bigger.

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