Blockchain Is Revolutionising the Crowdfunding Landscape. What is ICO and IEO?

AUTOMATED NEWS ALERT

How Blockchain Is Revolutionising the Crowdfunding Landscape

Blockchain technology is gathering momentum, creating new and interesting opportunities for people around the world. Prior to the advent of Blockchain, this innovative fundraising concepts just starting to gain visibility.
 
In a previous article we were discussing the crowdfunding market that seemed to loose momentum and actually was shrinking. One of our conclusions was that the crowdfunding market should transform in order to remain relevant and should give people a stake.
Crowdfunding platforms are also bias to start-ups from some particular regions because the selection process for the crowdfunding campaigns are quite subjective. 
 
Blockchain tech does seems to have the solution for this market.  Similar to IPO (Initial Public Offerings) companies can no have the possibility of an Initial Coin Offerings (ICO) issuing tokens which act as the company’s shares without equity exchange. Investors purchase the crypto-assets (tokens), instead of shares, using either cryptocurrency or fiat currencies such as US dollars.
 
The authors of comparethecloud.net are emphasising the constant transformation of the market: “One of the latest inventions, Initial Exchange Offering (IEO), could soon disrupt how start-ups raise fund through token sales. In this new system, the tokens are sent to a suitable exchange, which acts as a counter-party, making them available to individual investors.”
 
 

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