How ICO works

How ICO works

Initial Coin Offerings it is an alternative form of crowdfunding that has appeared outside of the traditional financial system. This model has helped many successful projects and companies to start their business. In 2013, over US$5.1 billion were raised via crowd funding through the world, which raised to US$16 billion in 2014 and was estimated at over US$34 billion in 2015.

Initial Coin Offerings is the cryptocurrency version of crowdfunding and mostly are a part of the crypto world that will be in future for sure. It's one of the easiest and most efficient ways for companies and individuals to fund their projects to invest in projects which are for them valuable. An Initial Coin Offering is a great event where usually takes part during a period of one week or more and in which everyone can to buy newly issued tokens in exchange for established cryptocurrencies like Bitcoin.

There is a concrete goal in an ICO, for funding in a project, that means that every token will have a special price that will not change during the Initial Coin Offering period, which also means that the token is static.

But also it's possible to have a static supply with a dynamic funding goal. And the distribution of tokens will be issued according to the funds received, that means that the more funds the project receives the higher the token price will be.

You can also receive a dynamic token supply that will be determined by a number of funds that are received.

Waves ICO

Nowadays The Waves Platform is a custom token and asset platform which focuses on business applications with features like custom token and asset issuance and exchange, fiat gateways and crowdfunding tools. Now The Waves Platform is unfinished currently and most of these features are still developing. The Waves ICO started on the 12th of April and lasted until the 31st of May. During the first day, users received a 20% bonus. The Waves ICO is an example of an "overbought" ICO with 29636 BTC and 460 BTC in NXT asset swaps being exchanged for Waves. The token has been trading under ICO value since the beginning of its release on exchanges, which can also be attributed to delays in the Roadmap.

Conclusion

Analyzing these and other Initial Coin Offerings we made a simple conclusion, smaller ICOs usually have more area for growing but everything that really has a great meaning is the underline technology, as Ethereum has proven.

Pay attention, please do not invest more than you can afford to lose and to research the technology and team behind the project.

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