Are you ready for ICO?


There has been a gold rush in ICO (Initial Coin Offering) and investors are all scrambling to get into this new mode of investment. According to sources, almost $2 billion has been invested in ICOs and surpassed early stage VC funding. A recent example is FileCoin, a blockchain storage network which has raised almost $200 million in funding from accredited investors in less than an hour. Last week, blockchain startups like Loopring and BetKing have both raised funding via ICO, while Canadian messaging app startup Kik has disclosed its plans to raise $125 million ICO this month. So why do tech startups and investors love ICOs? ICOs provide blockchain startups a way to raise money efficiently outside the traditional venture capital world. They are also cheaper than IPOs and require less documentation. On the downside, ICOs are unregulated and can attract a lot of scammers. There’s also the lack of transparency from the exchanges on which the coins are traded thus it will be easy for participants to manipulate prices.

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