Initial coin offerings ICOs process, benifits and risks

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How are you all steemians?I hope you all steemians will be safe and sound by the grace of Allah Almighty and I'm fine too Alhamdulillah. Today I am here to share my thoughts and knowledge about the initial coin offerings ICOs.

Initial coin offerings ICOs

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Introduction

An initial coin offering is a requisitioning mechanism which is used by the technology of the blockchain and the projects of the cryptocuurency to raise the capital from the stockholders.It involves the publication of a new cryptocuurency or the new tokens to the investors like the Bitcoin and the Ethereum.

History of initial coin offerings

In the year of 2013 , the first coin was directed by Mastercoin but it was the Ethereum initial coin offerings in the year of 2024 that achieved the worldwide attentions.

Now, the initial coin offerings have become a famous way to raise the funds for the technology of blockchain and also the projects of the cryptocuurency.

The ICO process

A team of the investors and the entrepreneurs come up with an idea for the project of the cryptocuurency or for the technology of the blockchain.The team of the developers created a white paper on which the outlines of the goals of the project and the models of teg business has mentioned.

The team of the developers and the entrepreneurs develop a new cryptocuurency that will be sold to the investors.An initial coin offerings ICOs compaign started in which a website is created, a social media platform and plans for the marketing have done.

After that the selling of the tokens started and the investors can but the new tokens or the new cryptocuurency.When the selling of the tokens started the team of the developers uses the funds raised to develop their projects of the cryptocuurency.

Benifits of initial coin offerings

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The initial coin offerings ICOs provide access to the capitals from the universal pool of the investors to the project developers.The initial coin offerings ICOs provides the decentralized funding.

It allows the developers of the project to raise the funds in a decentralized way without the need of the intervenors.

The initial coin offerings ICOs can be helpful to raise the liquidity goe the developers of the project when the investors sell and buy the cryptocuurency coin on the market.

Risks of initial coin offerings ICOs

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The initial coin offerings ICOs are mainly unreserved which can make it tough for the investors to know that the whether the project is legal or illegal.The initial coin offerings ICOs are endangered to the scams and fraud.

The prices of the coins can be extremely volatile which can cause loss for the investors.These tokens can be vulnerable to the risks of the security like theft and hacking.

If the developers of the projects may not provide the enough knowledge and information about the plans of the projects and it becomes difficult for the investors to make decisions.

If the developers of the projects have not proper skills about the project it can failure of the project.The initial coin offerings ICOs can be suspected to the risks which is associated with the keys personnel.

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