How ICOs Overcame IPOs In Business Investments.

in #investment5 years ago (edited)

A lot of people on the crypto space are still not clear with what IPO (Initial Public Offering) means, they have no idea that the ICO (Initial Coin Offering) took the place of IPO in business investments. However, if you are conversant with the stock market or pay much attention to Wall Street, then there is a possibility that you fully understand what IPO"s are all about.

ICOs.jpg
source

As IPO's represent the stock market, so do ICO's stand, in regards to blockchain technology. The Processes and regulations on how to invest in ICO's are easier than that of IPO's and have created better opportunities for investors, that is why most of the reasons below make ICO'S stand out.

  • Investing In New Upcoming Technology.

One of the biggest sign of investing in Initial Coin Offerings over Initial Public Offerings is the chance of investing into a new technology startup, due to the fact that the establishment of an ICO is to revolutionize an industry or institution in one way or the other. However, for you to be among the first investors in the right technology startup, a critical analysis should be considered before you get on board.

In the case of IPOs, there are loads of requirements that are considered before you are allowed to invest in startups, and they are offered to an exclusive type of persons or institutions with good financial records. there are different verifications done by investment banks to filter companies and individuals before issuing out their shares.

  • High Returns Of Investment

Initial coin offerings are topping investments with the high returns investors are getting. Technology projects issue out their digital tokens to investors who find the idea behind their products and services interesting, these blockchain projects have also been able to raise billions of dollars.

As these digital currencies are listed on cryptocurrency exchanges, they start to increase in value. Below is a list of some incredible blockchain projects that made tremendous gains during their ICOs.

Tokens/coinsReturn Of Investment.
NXT598054%
IOTA226013%
Ethereum147877%
Neo103133%
Spectrecoin51328%
Stratis38642%
Ark11969%

Unlike IPO that will take you years before getting these kinds of returns except if the company is sold.

  • Short Duration Of Offering.

The short duration at which CIOs are being conducted takes advantage over traditional IPO, the initial public offering takes a very long process in issuing shares or stakes due to the list of requirements that are considered as legal processes. It takes about 4-6 months for companies or investment bodies to get approved by regulatory bodies and take part in the IPO itself.

ICO processes are shorter, although it depends on the activities of the blockchain project, once the team is done with their whitepaper and smart contract are available, then all sales can take place. Softcap and Hardcap are also considered before the end of ICOs.

  • Access To Offerings.

As long as you possess a wallet with ether or bitcoin, you can participate in Initial coin offerings, these currencies will be converted to the ICO tokens. These processes eliminate the autocratic nature of traditional crowd fundraising, allowing everyone to participate in investments that can multiply their capital.

invest.jpg
source

IPOs in the other way round are only allocated to institutional bodies that are capable of providing large funds. Sometimes, individuals or small retailer investors are given the chance to invest, but in a very small portion. this makes shares available to only a few people in the community, leaving the masses out of business investments.

Investing in Initial Coin Offerings also allow investors to have portfolio diversification, own digital assets that are not based on fiat currencies, a transparent use of funds by team and developers and a technology the is not regulated by any government organization.

Thank you

Sort:  

Hello! I find your post valuable for the wafrica community! Thanks for the great post! We encourage and support quality contents and projects from the West African region.
Do you have a suggestion, concern or want to appear as a guest author on WAfrica, join our discord server and discuss with a member of our curation team.
Don't forget to join us every Sunday by 20:30GMT for our Sunday WAFRO party on our discord channel. Thank you.

Coin Marketplace

STEEM 0.30
TRX 0.12
JST 0.034
BTC 64513.75
ETH 3146.11
USDT 1.00
SBD 3.95