Initial coin offerings (ICOs) or token generating events (TGEs) have been the subject of much speculation lately. Due to the anonymous nature of the crypto world, many ICOs have been orchestrated by scammers, while others were raided by hackers. Despite their volatile nature, TGEs have many good qualities and there are safe ways to pick the ICO projects to help participate in.
Why ICOs are Good for the Economy?
1. Faster Access to Funds
ICOs or digital token sales are a viable crowdfunding option. They are not inhibited by the bureaucracy of traditional multi-stage fundraising methods; all that is required to participate is for the founder to write a compelling white paper, assemble a world-class team, and subsequently organize the TGE. Sales typically run for a predetermined period, usually with a certain fundraising amount in mind.
2. The New VC
Through token sales, blockchain-based startups raised roughly $327 million in the first half of 2017 alone, while the same group raised $295 million via VCs and ~$180 million through other traditional sources. It seems that blockchain innovators’ primary funding source is increasingly becoming token sales.
3. A New Form of Currency
Digital tokens serve dually as a form of fundraising as well as an exchange of value in both traditional and non-traditional marketplaces.
Read the full blog post here: https://celsius.network/when-and-why-to-get-involved-with-icos/