Fundraising Then and Now

ICO is the hawk gliding quickly in fund raising industry as it creates liquid cash and equity growth without giving in any equity. Today ICO is replacing the traditional methods of fund raising like Bank loans and IPO`s. With ICO millions of dollars have been raised during the token sale in just a single day. The advent of ICO`s has been lead by blockchain application development, where smart contracts are used to validate an authenticate the transactions. Using open source software’s, to design your own currency, with real base value and making exchanges with investors; it is how businesses raise millions of dollars.

The main reason why investors are interested in buying crypto currencies is during the initial coin offering are at a lower cost. When the ICO hits the marketplace and the product prospects are positive, then there is a positive speculation leading to rise in crypto currency value. Bitcoin was for one dollar in 2011 and now it has crossed 4000 dollars. This implies that a digital asset for the investors is created in exchange of cash money or fiat money. This digital asset has a value which is assigned by consensus of people in the business. This value depends upon the project one puts money in; it is other factors to take under consideration as well that define the value of a crypto currency.

How is ICO replacing Traditional crowd funding platforms?

• • • Fast method of fund raising – Bank loans and IPO`s are very time consuming and involve a lot of bureaucracy.
    • Best suited for risky ventures – It is better way of raising funds for risky ventures as banks and IPO`s may not give weight age to the modern ideas and may shrug away.
    • It minimises the risk of fund misuse – The blockchain development based database in ICO`s is managed on a distributed ledger and thus all the transactions are mutually updated in the blockchain making the fund use more transparent.
    • Huge ROI – Yes, quick profits interests investors. Not only bitcoin and Ether, many upcoming crypto currencies make huge profits.
    • Liquid Cash – As compared to traditional ways of crowdfunding ICO are much quicker when it comes to having funds in hand which further helps to elicit profits.
    • More Secure – It is far more secured as compared to its previous versions. There are research groups who analyse ICOs to make them more secure and compliant.
    • Digital asset – Unlike equity based IPO Shares, Crypto currencies can be transferred without additional cost of involving a 3rdparty.
    • Universal acceptance – Crypto currencies are universally accepted and can be converted in all currencies and can be used to sell and buy goods and services across border.
  NetSet is one of the Best custom software development services providers and one of the top Blockchain development Companies in India and has helped California, Singapore, Tokyo and Honkong in raising ICO`s as a stable platform for reliable investment. To know more drop us a line on direct@netsetsoftware.com.