ICO:- A Breakthrough In Blockchain To Raise Fundings

In today's world, there is an extensive competitive economy in the world. and doing a business or expanding existing business is not an easy task for both new startup or existing business persons. Traditionally to raise funds for the startup there is a process like IPO, venture capital, private equity, angel investors, or loans.

But as the technology gets advancement there is a new and efficient way to raise the fund and it is known as Initial Coin Offerings (ICO).

It is a fundraising technique for business or a new project. In this Crypto, Developers sell their crypto-token in exchange for fiduciary currency or other cryptocurrencies.

 

And to make a successful ICO. It needs a good ICO Solution Company. Which has good exposure in ICO services and W3villa is a company which you are looking for. Which have outstanding technologies for ICO development or token sales platform. We have a technology that offers you to create an automated token sales platform

 

ICO V/S IPO

 

Although the motive of IPO and ICO are similar, the way of raising capital in both are different from each other.

IPO- Stands for initial public offering, also known as going public. In IPO the company is issuing its portion of shares to public or institutional investors for the first time and get listed in Stock Exchanges e.g- NSE and BSE in India.

 

·         In IPO there is a regulatory authority takes place for the safety of investors from fraud or scam in India the regulatory authority is SEBI Stands for the Securities exchange board of India.

·         Tenure of Launching IPO is at the later stage in the company for development or expansion or to pay the debt of the company. This company is already in work and generation their income and they launch their IPO for long-term development.

·         In IPO there is a presence of a middle man like brokerage fees, Stock exchanges. Which charges some fees on the capital gain for providing services.

·         For the allotment of shares, IPO is predefined by regulatory authorities generally IPO is allotted in Lots via Lucky draw if the subscription of IPO is more.

·         In IPO public buy share for long term investment and the short term, they do trading like intraday.

·         IPO is not open for all its exclusive access to offerings. To buy IPO a person needs to have a DMAT account. And many details are required like bank details PAN details etc.

ICO-  Stands for Initial Coin Offerings, it is a new cryptocurrency technology providing an option of investing in crypto space. It is somewhat like crowdfunding to kickstart a start-up or to raise fund for it.

·         In ICO there are no regulatory authorities so it is much risker and many frauds are taking place in the name of ICO.

·         The tenure of ICO is generally at the initial stage of the company to kickstart a business by raising capital from the crypto space.

·         As we know the whole concept of Cryptocurrency is based on the removal of the middle man or third party. So there is no involvement of any other party so there are no charges to launch ICO.

·         For the allotment of ICO tokens, there is no regulatory authority takes place. So it is much risk for investors to invest in ICO as there are many frauds are taking place and the business is also new which is quite risky to invest in for investors.

·         In ICO the investment is done for the short term.

·         ICO is open to all any person who has a cryptocurrency wallet can bid for ICO. Without giving any details.