ICO stands for Initial Coin Offering, sometimes referred to as crowdsale, which can be interpreted as a mean for startups to issue their digital currencies built like Bitcoin. This fundraising method came into being in 2014, however, started to be widely and successfully used only in 2017. Only in the last year, more than $3.5 billion was raised through ICOs.
ICOs are usually used in the following fields:
- Trading and investing
- Commerce and advertising
- Social network
- Gaming and VR
Even though ICOs are conquering the crypto space alarmingly fast, there is a number of problems and risks associated with them. Firstly, in 2017 the ICO failure rate was over 50% which resulted in disrupted confidence of investors and thus decreasing supply of money. Secondly, there has been a large number of scams, frauds, and cyber attacks which destroyed a number of businesses and also the trust of the public.
The Biggest ICO Successes
NEO. Despite all of the challenges and risks described above, some businesses managed to outperform everyone’s expectations and are worth mentioning. Among them is NEO, formerly known as Antshares, and currently known as China’s Ethereum. NEO’s ICO success may partly be explained by the support of the large global corporations including Microsoft, Alibaba, and also the Government of China.
Ethereum. Another great ICO was definitely Ethereum, the second-most valuable cryptocurrency in the world. Ethereum is not a simple cryptocurrency as Bitcoin is, but rather a ledger technology used to build and deploy a program that automates the execution of a contract with correct conditions in place. The currencies ROI reached 230,000% being almost the market’s maximum and attracting many corporate players wishing to enjoy the advantages of the smart contract application.
Spectrecoin. Main value of this cryptocurrency is its anonymity. Through utilization of the Tor network and a heavy-handed encryption, Spectrecoin turned to be almost untraceable which means a lot for customers in the world of cryptocurrency. The ROI of 64,000% is also an indicator of the ICOs success as people who bought a token back in 2016 for just $0.001 would have $0.64 today.
Stratis. The Stratis platform offers businesses the ability to create, test and deploy custom applications without the need to set up or maintain their own infrastructure. In other words, it is a blockchain for corporate dummies. Based in London, the project raised 915 Bitcoins in only five-weeks time. Nowadays, Stratis’s ROI amounts to 56,000%.
Storj. This is a platform aiming to become a cloud storage facility based on blockchain technology, thus, being faster, cheaper, and even more secure than all other alternative variants. Storj offers its users to either purchase free hard drive space, or rent it out in exchange for currency in a quite simple and accessible way. This simplicity was undoubtedly the main prerequisite for the project’s success and profitability of up to 11,888%.
All in all, with the help of the blockchain technology, as well as ICOs cryptocurrencies got a chance to grow and offer innovative decisions to a great many of problems. Every year there are more and more promising and successful ICOs, and the ones mentioned in this article are only some of the most prominents ones to be on the cryptocurrency arena in the future.