We all know it that IPO is the fundraising event for established companies. But what about startups? Everyone knows that economy lies in the success of startups. Cryptocurrency is revolutionizing the world and the most applicable way is how startups are fundraising. Let’s discuss the methods in which startups can raise their fund through cryptocurrency.
Crowdfunding – Earlier, the principle of crowdfunding was totally different. The explosion of cryptocurrency inspired a new model through which inventors can fund their products. The basic concept behind this is really simple. In this method, the inventor issues a new virtual currency tied to a particular product, each unit of which portrays a defined share of future profits. It is just like shares in an actual stock market, these tokens or coins can be freely traded or collected. It helps the startups to bring together many individuals who want to support their project by investing in it. It is also transforming the way of how the companies are raising their capital.
ICO – An ICO is a way through which startups can raise funds by offering their own cryptocurrency in exchange for Ethereum/ Bitcoin/ any other crypto or fiat currency. The new token can be traded and sold on cryptocurrency exchanges. ICOs are better than traditional forms of fund raising in many ways such that there is no geographical limitation. We can also say that, it is an alternative of crowdfunding with the same goal.
Because of the transparency and interference free environment, startups are getting attracted towards cryptocurrency for fundraising. This is definitely a smart and better way than the traditional way. In the future, cryptocurrency will drastically change banking and commerce sector leading to attract more investors.
To launch an ICO/STO, a business or startup needs:
- A whitepaper
- Website (Token Launchpad)
- Cryptocurrency License & bank account from crypto friendly country like Estonia or Malta
- Token (ICO)
- Get listed in cryptocurrency exchanges
- A strategic cryptocurrency marketing (PS: google, facebook, twitter and many more have banned cryptocurrency marketing)
Best cryptocurrency services toady in market are provided by ico-developer.com who have worked with successful ICOs as well as STOs.
While if any trader or investor wants to make quick money in trading, then trading crypto is the best option. Cryptocurrencies are highly volatile in market & past records shows more than 1000% fluctuations in short time. It may be quick way to make money for investors if they have done market analysis before investing money. But if they just go by known people hype, they are likely to loose all their money. Best option is to get it traded via professionals who will manage your portfolio.
You can visit http://assedex.com to avail best benefit out of your crypto investment. It provides you a highly secured decentralized cryptocurrency exchange to trade your cryptocurrencies.
Here are few officials links: firstname.lastname@example.org
For blockchain learning solutions please visit: https://diyblockchain.co/