Initial Coin Offerings: The Brave New World of Raising Startup Capital via Blockchain

IT Expert, ICO Service Provider Explains the Rising Trend of Token Sales

Press Release (ePRNews.com) - BEAVERTON, Ore. - Jul 10, 2017 - Prior to the mid-90s, the Internet appeared to be complicated network exclusively for government operatives and academics. No one predicted the disruption it would create in society.

Today, “blockchain” is a buzzword that is similarly mysterious and arcane-sounding. But the technology powering the cryptocurrency bitcoin is predicted to have the potential to disrupt every industry and connect the world similar to the way the Internet did two decades ago. Already, the technology is being used by entrepreneurs to raise capital for business via Initial Coin Offerings (ICOs).

The ICO is blockchain technology’s daring attempt to replace Wall Street. Rather than exchanging dollars for shares, which usually comes with a claim on profits and voting rights, an ICO exchanges bitcoin, ether, and other cryptocurrencies for an issuer’s newly-minted digital currency or digital tokens.

In an ICO, tokens are sold directly to general public, which in turn provides something similar to equity ownership for the token holders. The selling of these tokens is referred to as a “token sale” or “crowd sale.”

Blockchain, the digital, distributed ledger behind bitcoin, enables the creation of tokens that have value in and of themselves. According to data released by online publication Coindesk, ICOs have surpassed venture capital (VC) funding as a means for raising cash for their startups. Entrepreneurs raised $327 million from ICOs during the first half of this year.

“ICOs are a win-win for investors and entrepreneurs,” said Ken D’souza of IndSoft Systems. “They offer easy access to liquidity through digital exchanges for the former and enable founders to access a much larger global pool of investors.”

IndSoft recently introduced Initial Coin Offering services to help upcoming business and entrepreneurs execute successful ICOs. The firm’s secured,white-label solutions for ICOs include creation of smart contract or tokens, security audits of token systems, secured hosting to raise funds and distribute tokens, accepting crypto and fiat currencies for ICO / Pre-ICO, listing assistance with crypto exchanges and promotion of ICOs.

The key factor driving investment into ICOs is that there are currently no significant regulations issued by government agencies regarding token sales.

“With positive response from investors and entrepreneurs alike, we are flooded with inquiries for ICOs,” D’souza said.

The company that provides technology to setup and manage ICO’s. ICOs is most suitable for building long term businesses working on disruptive ideas capable of rapid adoption by consumers.

As enthusiasm for ICOs grows, so does a dose of skepticism. As with all high-return investments, investments in ICOs bear some risk.

“It is wise to never commit more money than you can afford to lose,” D’souza said. “It is important to understand that buying into an ICO is not the same as investment in stock market. When you buy stock, you literally buy a piece of the company. Similarly, stock is regulated and compliance and accreditation are involved. Legal infrastructure may come to cryptocurrencies eventually, but now it is an unregulated market.”

Still, with proven demand and interest from both entrepreneurs and investors and limited regulatory guidance, ICOs could continue to gain steam as a fundraising mechanism.

For more information about IndSoft Systems’ ICO services, go to http://icotokens.indsoft.net.

About IndSoft Systems

Founded in 1998, IndSoft Systems is a leading internet infrastructure company offering ground-breaking solutions built specifically to power real-time web and mobile applications.

Learn more about IndSoft Systems at http://indsoft.net.

Source : IndSoft Systems

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CATEGORIES : Technology
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