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image url)An Initial Coin Offering (ICO) is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange. It is similar to an Initial Public Offering (IPO) in which investors purchase shares of a company.teams to raise capital to fund the development and expansion of their projects. In an ICO, investors typically buy newly minted tokens that are issued by the project's development team. These tokens can be traded on various cryptocurrency exchanges, and their value is determined by market demand.
Why ICO's are new way of fund raising?ICOs are a relatively new way of raising funds because they take advantage of the unique properties of blockchain technology and cryptocurrency. One of the key benefits of ICOs is that they provide a decentralized way for project teams to raise capital, which allows them to bypass traditional financing channels such as venture capital firms and bank loans. Additionally, the use of blockchain technology and cryptocurrency allows for a more efficient and transparent process for both the project team and investors.
ICOs also provide an opportunity for anyone to invest in a new project, regardless of their location or net worth. This democratization of access to funding opportunities is one of the reasons why ICOs have become so popular in recent years.
ICOs also have a lower barrier to entry than traditional fundraising such as IPOs, which requires the company to go through strict legal and regulatory compliance and also get listed on the stock exchange.
ICO’s are evolving with time
However, it's important to note that the regulatory environment for ICOs is still evolving, and many countries have yet to establish clear guidelines for how ICOs should be conducted. With the legal procedure, the initial coin offerings have evolved itself and provide a safe and secure environment to the investors.VISIT US :- https://aeternus.foundation/
