Back when they first started appearing, initial coin offerings (commonly referred to simply as ICOs) sent the entire digital world into a spiral of excitement.
Seemingly out of nowhere, we suddenly had a way to support and invest in projects without having to adhere to the restrictions of venture capital. Instead, investors could directly fund project managers with their Bitcoin and Ethereum coins, and, in return, receive tokens that got value once the project was developed and officially launched.
Almost instantly, the potential of ICOs took the public by storm. However, the very concept of digital fundraising shared a major tread with the cryptocurrencies that indirectly spurred them into existence – both of these technologies had no regulation whatsoever.
The only difference was that cryptocurrencies were designed in a way they don’t need someone to regulate the system. ICOs, on the other hand, were not.
In recent months, it seems like the hype around ICOs has settled down a bit. And the main reason for this is the lack of a notable regulation within the ICO industry. Sure, some countries have started to experiment with supervising this form of fundraising, but this world still remains largely unregulated – and this is taking its toll on initial coin offerings’ reputation.
However, just because there are stories out there associating ICOs with various frauds, this does not mean that the entire concept of independent fundraising should be condemned, right?
Hoping to present initial coin offerings in their true light, experts at BTXchange created the following infographic. It presents you with all the good and the bad aspects of this revolutionary way to get funded, making it a perfect resource for anyone who has no past experience with ICOs.