What is an ICO and How Does it Work?

Posted by POPCoin on June 26th, 2018

Initial Coin Offering is a unique way that has proven to be a revolutionised method for many companies and projects to raise money. It can be said as the amalgamation of conventional methods and advanced techniques. The crucial factor under consideration is that investors investing in the ICO (Initial Coin Offering) will be 100% free of risk due to the technology used.

Till now, most of the ICO funds are collected thru Bitcoins (BTC) or Ether (ETH). While performing the ICO, the project produces Ethereum address to receive funds and then, shows it on the respective web page. The procedure is same as opening a bank account, and then showcasing it on a particular web page to investors to send money.

Initial coin offering (ICO) is basically a way to collect crowdfunding via various cryptocurrencies and is functioned by cryptocurrency organisations to acquire the capital funds required to finish the project. In an ICO, a particular part of the recently issued cryptocurrency is being traded with the investors in exchange for any legalised tender or any other cryptocurrency. It can be said as POP token sale or crowd sale that involves taking investment amount from investors and providing them with certain features related with the project to be launched. The POP token is a data chunk that includes this specific number. It includes the name of the token and the time of issuance. Moreover, the additional data can be recorded in a data area.

The first token sale of Private-On-Public coin is very important. ICO is basically conducted for cryptocurrency based projects which depend on decentralised technique. POPCoin differentiates the public blockchain where all users of POPCoin are included from the private blockchain that enterprises or groups exclusively use for their purposes. This differentiation succeeds in creating a structure that increases overall effectiveness and enables various applications within groups.

The document that belongs to an investor certainly remains in the form of a webpage, White Paper POP Coin or web post. Whitepaper shows exact details about the project. It is necessary to ascertain whether some features are literally fake and included to mislead the interested investors. Thus before relying on any white paper or e-document it is better go through a quality check. Most often reliability of the company is adjudged after identifying in how many languages the company is providing you the whitepaper and advertising initiatives.

The POPCoin system is a hybrid structure of a public network and a private network. Public networks have public block chains, and private networks have private block chains.