ICOs (Initial Coin Offerings) have received a great deal of exposure and press recently. While still figuring out the real deal behind ICOs, the crypto-verse started receiving airdrops. ICOs and airdrops are taking the crypto space by storm—and that’s why lots of people want to know about the hype surrounding these two digital assets. So, we’re dedicating this entire post to exploring what an ICO is and what airdropped tokens are.
What’s an ICO?
You may know about Initial Public Offerings or IPOs where businesses sell stock to raise funds. In short, an ICO is quite similar to an IPO with a couple of differences here and there. How did the ICOs come into existence? Well, for that, we have to go back to the blockchain.
Blockchain tech is evolving and allowing the world to make transactions without any third party—that’s basically called a trustless transaction. This tech is one big step toward solving a lot of issues related to digital trust. However, as the technology is advancing rapidly, more and more start-ups and established companies are using it to raise funds. Yes, that’s what ICOs are all about; they are actually blockchain-powered crowd sales.
Through ICOs, the investors get to invest in really exciting, innovative development projects generally launched by startups. So those companies that are all set to launch their respective ICOs will have to accept cryptocoins or fiat currency in exchange for their tokens. Technically speaking, these tokens are shares of a sort where the token holders will get future profits if the assets’ value goes up. (However, unlike a traditional share, a token won’t involve a lot of legal regulations.)
How Does an ICO Work?
Every single ICO project will begin with an idea—something truly revolutionary. This idea is generally developed by a startup, and the concept will rely heavily on blockchain. First, the team will bounce the idea off the crypto community to get its collective reaction.
Now, if the startup finds that the idea is gaining traction, then it’ll formally go ahead with the concept and draft a white paper. In the paper, the company will have to provide a lot of details about the project’s team, its tech aspects, and other future plans. Other project-specific details will be included as well. These details will cover the total number of tokens available, the price of every digital asset, and the number of tokens that’ll be distributed. With that, the paper will clearly list the work of the token within the project’s ecosystem.
Afterwards, a lot of marketing campaigns promoting the project will be launched. Once the campaign gains momentum, an ICO date will be unveiled; that’s the date when the actual token sale will begin. This sale will generally be live for a definite time period and within this space of time, the project’s team will have to raise the required funds. Once the funds are successfully raised, the sale will be closed.
All those investors who’ve joined the sale will eventually begin receiving the tokens; then, finally, detailed plans will be made to know when the tokens will be listed on exchanges. Obviously, that’s a simplified summary and a great deal of work actually happens behind the scenes before and after the token’s launch. Like any form of fundraising, the chief aim of an ICO sale will be to create a pool of investors. These investors will believe in the project’s vision and will invest in the hope of gaining profit in the future.
But what about all those investors who want to play it safe by not investing in a token but still hoping to own one? Well, for them, the crypto world has airdrops.
So, now, let’s get to know what these airdrops are and how they’re benefiting risk-averse investors.
Airdrop: The Ultimate Crypto Freebie is Here
Put simply, airdropping is a phenomenon where a blockchain startup will distribute free tokens to get its project up and running. That’s why a lot of industry insiders say that airdrops are crypto freebies in every way. Airdropping is actually an ICO marketing technique that’ll be a true success if it’s implemented properly. By delivering free tokens, the business will build the hype around its project quite quickly and easily.
Considering everything, airdropping is actually a properly calculated marketing move. We’re using the word “calculated” simply because not every business will deliver free tokens to all the people. There are some pre-defined conditions that businesses impose before sending airdropped crypto tokens. For example, there’ll be a business that’ll deliver free tokens to only those investors who have an active crypto wallet or who are active crypto traders.
Knowing About the Latest Airdrops Matters the Most
So knowing which blockchain-based project is delivering free tokens is really important. That’s why there has to be a go-to source, which should be dedicated to exploring different airdrops happening in the crypto community. In short, there should be a platform that will give its users the low-down on all the exclusive airdrops that are absolutely authentic. That’s where AirdropAlert.com comes into play.
Airdrop Alert is a website that lists all the genuine airdrops that are either live or happening in the future. Now, if you truly want to own some airdropped tokens, then this website is where you can start looking.
Disclaimer. This article is paid and provided by a third-party source and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds in any company. CoinIdol shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services mentioned in this article.
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