This infographic provides a detailed look into Initial Coin Offerings. As this is a fairly new term in the world, not many people are aware of what it means, yet it can be explained in very simple terms. It could be described as putting the power of creation into people’s hands, and has been made possible through the rising idea of blockchains. It enables people to buy into and invest in companies that are offering a new digital currency.

A digital currency exhibits properties that are very similar to physical forms of currency, such as coins or banknotes, but allows for transactions that are instant and easy to transfer the ownership of. The currencies can be used to buy physical goods and services, but in many cases can only be used to purchase a certain type of product. There are new digital currencies or even entire company projects with a digital coin being a small part of it, constantly being created, and Initial Coin Offerings is an excellent way to raise funds to support these projects and the creation of any new currency. This can be done by sharing the initial supply of coins to those that have supported the project from the start, or offered money towards making the start-up happen. An ICO is clever because not only does the project get funded quickly and safely, but the problem of the distribution of the initial coins is solved, because they are distributed to those that have given money to the project in the first place.

If the project is successful, then those that have invested their money profit from it, so it is a risk that they have to take when putting money forward. It can be a pretty successful investment if done properly, with many companies making a lot of money quickly.

The first ICO came into play in 2014 for the Ethereum project, and since then many have followed. Some of the projects that have followed this include the Xcloud coin, Sembro, The Draftcoin Gaming Network, Bitrush Corp., Peerplays, Lisk, and many more.

Out of all of these ICO’s, the most successful by far was Ethereum, making over $18 million dollars. Therefore, those that invested and put money towards this platform and it’s cryptocurrency in the beginning would have benefitted greatly, and made a lot more money than what they initially put into the project. Many of the other projects were still very lucrative, but nowhere near to the extent of Ethereum.

Although the first of these start-ups was a good two years ago now, it doesn’t mean that the rate of creation is slowing down, there are still many cryptocurrencies that are in need of investment in order to fully be created and go into circulation. Yet the problem is, the more there are, the harder it is to decide on which is the best to invest your money in, and in which you are most likely to make a profit from.

An infographic from DinarDirham , check on our Blog.