There’s been a whole lot of buzz about ICO. Initial coin offerings (ICO) operates similar to IPO but in an unregulated settings where founders raise money by hosting crowd sale of future cryptocoins in exchange for Bitcoin, FIAT and Ethereum. Basically, I can create a token for my bitcoin exchange (nairaex.com)
For investors, participating in ICO can be very rewarding for example, $2700 invested in ETHEREUM ICO is now worth around $3-4m
For founders, ICO gives you access to capital to complete your project without traditional lenders and venture capitalist.
Recent ICO NEWS
Former Mozilla CEO raises $35M in under 30 seconds for his browser startup Brave
Chat app Kik to host ICO
Omise to raise $19M in first cryptocurrency sale from a major VC-backed startup
Ethereum-Based Aragon Raises $25 Million Under 15 Minutes
It’s not an escrow. Funds are stored on what we call Smart Contracts address which is another kind of account in the ethereum network unlike the regular account where you store coins/money. If the organisation is a DAO - Decentralised Autonomous Organisation, it will be a collective decision on what to do with the funds by peeps that have contributed.
Good investment portfolio you got there. If I may ask, what informs your decision in buying into an ICO? It’s advisable to invest on Protocol Layer DApps instead of Application DApps or DApps that add value to a democratized (work/decision making) tokens/ICO.
Let me use this medium to introduce our Superneum Pre-token/ICO which is currently at a 40% discount before the main ICO. Current value is $10 per token. You can read about what we have been upto with invested funds so far here and this is what we have been doing since this year here. Creating a DAO takes a lot of work especially one that is focused on creating valueable DApp ahead of an ICO.