Before learning more about tokens, let’s first discuss the characteristics of ICO and how it is different from IPO. Few of these tokens can be bought using fiat, while others accept payment via cryptocurrency. Rather than offering shares to the market, ICOs offer ‘tokens’ for the public to buy. With a substantial piece of their cumulative money being raised in 2017 alone, ICOs have been able to raise more than $2.3 billion in funds since their inception. Notable companies like Telegram and Kakao have raised funds offering ICO instead of IPO. ICO promise quick liquidity, immutable contract guarantees and most of all - they democratize access to investment capital.Īfter getting a lot of success, ICO witnessed increasing adoption among various companies who started developing ICO and use it instead of utilizing their capital markets. Powered by blockchain technology, ICO (Initial Coin Offering) was introduced as a fund-raising mechanism in which new projects offer their underlying crypto tokens in exchange for Bitcoin and Ether. This was an expensive affair as you have to utilize capital markets, which small and medium scale companies couldn’t afford. This is usually done via Initial Public Offering (IPO), where a company offer its shares for the public to purchase. What is ICO? “It’s like penny stocks but with less regulation.” - Jeff GarzikĬompanies raise funds for various business purposes like acquisitions, expansion, resource hiring, etc. Before we dig into it for details, let’s first tell you about ICO. If you are a fan of blockchain technology and following the industry trends, you must have heard about ICO. In this blog, we are going to discuss perhaps the most persuasive offering of the blockchain platform, which is ICO. In the past couple of years, the technology has evolved significantly and today, blockchain is much more than just cryptocurrencies. As there are no governing body or third parties involved, the technology is highly transparent and trustworthy. In our previous blogs, we discussed how blockchain enables transaction of cryptocurrencies through a decentralized environment. But there are scores of other benefits that this disruptive technology offers. Completely insane.We all know the magic behind the revolutionary Bitcoin is the blockchain technology. "But by the end of the day - last Sunday, eight days ago - I was running a Delaware corporation valued at $10 million with $100,000 in pre-seed funding, which is insane. I've been running a business based on consulting and based on academic R&D services," he continues. Instead the tweet "just completely exploded" and he found himself raising $100,000 "in a single day" - with $50,000 paid in there and then. "I posted that tweet and the expectation that I had was that basically 60 people max would retweet it and then maybe I'll set up a Kickstarter," he tells us. But Kobeissi says he was startled by the level of interest in the concept. For now there's nothing to see beyond Capsule's landing page and a pitch deck (which he shared with TechCrunch for review). Are you interested in funding its development? - Nadim Kobeissi JanuThe nascent startup has a post-money valuation on paper of $10 million, according to Kobeissi, who is working on the prototype - hoping to launch an MVP of Capsule in March (as a web app), after which he intends to raise a seed round (targeting $1 million-$1.5 million) to build out a team and start developing mobile apps. It will be lightweight, user friendly and secure. These then connect to one another in a mesh, allowing following and sharing posts. I'm designing a decentralized social media solution where each user hosts their own microservice. A day later cryptography researcher, Nadim Kobeissi - best known for authoring the open-source E2E-encrypted desktop chat app Cryptocat (now discontinued) - had pulled in a pre-seed investment of $100,000 for his lightweight mesh-networked microservices concept, with support coming from angel investor and former Coinbase CTO Balaji Srinivasan, William J. The idea for Capsule started with a tweet about reinventing social media.
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