The crypto world continues to develop its technology and expand its volume. Every day, the number of new cryptocurrencies keeps on growing. As a result, the need for fundraising or ICO to begin a crypto startup rises as well. What is an ICO? The term ICO or Initial Coin Offering is mostly used by crypto startup companies that are interested in creating their own cryptocurrency. This ICO can be compared to the Initial Public Offering (IPO) of the stock market, but instead of offering stocks to investors, the ICO offers its cryptocurrency or tokens.
In this article, it is important that readers must understand well what is an ICO and its history. Last 2017, the number of ICO in the crypto world dramatically increased as well as the volume of startup companies. It is also said that 2017 is the golden year of ICO. The ICO in this year reaches to over billion dollars compared to its previous year (2016) where the total value of ICO didn’t pass the amount of $5 million.
However, the golden days of ICO did not last long. Scammers and frauds influenced the fundraising method used by many startup crypto companies to build their tokens. In this event, many investors lost a big amount of funds and resources, which cannot be found anymore. This is also one of the reasons why ICO is not permitted in other countries. To prevent being a victim of fraud and scams, it is advisable to have in-depth knowledge about what is an ICO and its components to prevent future losses that cannot be recovered.
Regardless, the crypto space shows no sign of stopping its ecosystem from expanding and developing. The investors of the crypto world continue to find a way to create digital assets while staying away from possible frauds and scammers. The DeFi space is one of the successful digital asset ecosystems created lately by some of the crypto world’s financial investors. Today, the DeFi space maintains its total value locked (TVL) to over $1 billion. This article explained what is an ICO all about as well as its rise and fall in the crypto world.