Bitcoin Forum

What are advantages of ICO crowdfunding? Why is it better than a standard project funding?

 i know them, why do you want to know that?

For the developer the advantage is that they can collect some money with which they can move on with the project. For an investor the advantage is that they get an incentive when they crowdfund any ico. These two points are reason enough to consider it better than a standard project funding ;D

wrong these points existet before, ico litteraly replaced debt contracts as incentive so nature of incentive is now a virtual "coin" instead of a debt contract that could have been sold in the international market,

the advantages of icos are different ones.

this guy might be some form of spy or researcher of the traditional financial industry. So i am interested why he wants to know it.

regards

I do have the same doubt. Maybe hes just really a spy just want to know how ICO works and what are the advantages of it 8)

Well,theres a little description the advantages of ICO done into this forum do accumulate more faster than on a tradition crowd funding.

you got it pal  8) , everybody that truly had to deal once with the national banker cartels and realised how they work, knows fully why icos are awesome.

regards

Firstly, you own 100% of your company.

Secondly, you are selling a currency that will be used in your project in the future.

So, in essence you are already getting future customers.

ICO's will be awesome if he bare or have an excellent project on his head, but for spying just for scamming? Nah I don't think its a good idea to do it and maybe the people who plan should stop this greedy plan.

And we must be careful on those people who run and implement a Crowdfunding and anything else related unto this and be vigilant for all the times.

An ICO lets you fund your project while still in its infancy.
Development of coins/tokens costs a lot and many projects have unforeseen costs. An ICO allows you to fund your project while it is in the making.
It also gives you a good indication of the future popularity of your project and the ability to respond to constructive criticism offered by investors.

One need not invest full amount to the project, but a part of it. Less risk and more benefits. Crowdfunding validates the market and no risk or minimal risk to the investor.

Most Bitcoin experts are skeptical about ICOs, primarily because most ICO-related projects have hardly completed the technical aspect of their systems.
But, many projects that pass through the ICO have become successful, such as Ethereum. ICOs are often compared to crowdfunding and IPOs. But while they have common traits with all of those, they are unique in their own way and bring innovations to the investment landscape that weren’t possible before. ICO is a mix between donation and investment, somewhere between IPOs and Kickstarter.

I think a lot of actual cryptographic experts and programmers - the developers who work on projects - have a sincere dislike for ICOs, with good reason. Traditional venture capital bank their success on working products that have proven success and are backed up by actual trials on business models. The desire to scale or expand is what fundraising is all about. I've seen several ICOs that replicate this process - all tied to the gambling industry, where profitable gambling outfits simply want to expand their products/userbase, innovate and improve. This has a fair and justifiable need for ICOs and can be very successful.

But even the best planned ICOs lack the basic material that would be required due diligence that standard vehicles like IPOs do. And that, from the project owner's perspective, is its main advantage. You don't even need an existing product to sell. Just the idea and the promise of success.

u dont get it... starting a project via ico requires just an idea and work,

starting a project via banks requires getting them to print money for you which they dont want

they have other goals for you not those that you can chose via ico.

regards

The advantage of ICO crow funding is almost the same as the air drop which you earn free money because it create a better chance earn 2x, 3x or more out of the money invest.

mostly bit coin experts are use this ICO crow funding.alsomost it is same air drop which you earn money from free.in this.it can also gives you good indication of the future popularity of your project and the ability to respond to constructive critisism offered by the investors. so be carefully in deal with this ICO'S.

Its not actually bad to launch an ICO but would really depend on how good the project it is.This kind of crowdfunding would really be used on scamming people or investors this is why we should really be wary and vigilant when it comes on investing things. If op wants to know about the basics on ICO then he should search for himself.

Believe me, if anyone wants to scam, they won't stop after reading your post. I think this man has to get knowledge about this and not only this man, everyone, but usually people in scam ICO's are very experienced, not beginners. Just look developers of some scammer icos.
It will be awesome if he has great idea but lack of knowledge sucks.
In ICO you usually spend collected money in promoting and etc.

Let's start with the advantage of ICO(crowdfunding) the few people that are benefiting with this type of activity are it's developers or whomever are supporting the project together with the team for their plans. Also for the investors, in exchange for their money / investment - they'll get token / coin and it's up to them if they'll hold it or dump. But mostly what's happening is the disadvantage of it, their project aren't really good in the long run and they are letting it out of it's phase.


They are better in a way that you can just sit at your home and add some funds for them but I don't really think it's a better one than those usual crowd funding projects.

The only one who wins a lot of money are the founder of the project, because they fill their pockets with thousands of dollars, and maybe millions if they makeup their project and their whitepaper well.
If you find a good ico, then you can make a good profit if their project goes well, but it is risky to invest in icos right now, most of them are scam.

Correct me if I'm Wrong, Advantages of ICO is That They Make A Project That Can Help Investor Double Their Money.
For Example, ICO For New Wallets and For A New Coin, Then After A Month The Price of The Coin Should Be Doubled, To Be Successful.
If, The ICO Project Succeed Then All The Investor Get Their Money back to Double or Triple.

when chinese baned ICO's. The value of the tokens is lower :(

The advantage number one and reason why everybody are making ICOs now, is that you don't need to take a loan in a bank to realize it. That is the reason why banks have so negative position to crypto-currencies.
Other advantage that you don't need to run for money searching, you just create the site of your ICO and those people who see your project as perspective invest in it themselves.
The creator may have all those money in the process of investment, but not scam ICO will must to work on all of investors and to give them at least double profit. But creator just can't stay without a profit, so I'm agree about scammy nature of ICOs.

thee best advancement is gonna be the funding part if you ask me. Funding is always good when it comes to investments.

Crowdfunding is the way where projects can obtained a large funding without spending their own money. For project to become big, it needs large funding because the cost for development and listing it on exchanges is not a joke.

Now that the one of the purpose of crowdfunding is to gather money, many scam ICOs are being created to take advantage of it. Easy money as it is that's why always be careful when investing on ICO. There are some factors to considered before investing so better research on it first.

ICO is a great way to do a crowdfunding, because you usually don't need all your funds during the first weeks of your project. I mean, if you have a budget, you will spread it on the whole project time, obviously.
What is great with ICOs, is that it's mostly bitcoins and ethereum funds. Theses cryptos have a very decent value, and they might very well go up in value even further. Thing is: if ethereum doubles in prices in 6 month, and that the company planned to spend 1/12th of their funds each month ? Well, do the maths: beggining of the month, you have X. End of the month: 11X/12. However, that 11X/12 had a 2^(1/6) increase (in other words, over 12.2% per month). You see, each month, you spend 1/12th of your funds, or 8.4% approx... And each month, your eth gains 12% in fiat value.

So, unlike a conventionnal IPO, an ICO can literally give you an infinite source of funds, as long as crypto-market stays healthy and with such a drive in price.

Worst-case scenario, crypto value stays the same (or even drops a bit), but hey, you still have millions in fundings, so who the hell cares. It's free money.

So, to sum this up, ICO > IPO because free money > not-free money.  can't argue with that logic, uh? :p

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It allows projects to fund themselves without traditional VCs, so they can don't have the same limitations. So they can focus on some goal other then just pure greed. Look at the Ethereum foundation, they use the money to pay for open source projects and documentation to help the community. They don't have to worry about optimizing squeezing users, like a traditional company would

You don't have to give away equity, at the same time you need to make sure you have a utility token and not a security, so be careful.

First, it is the fundraiser for any project. It is essential, because it helps us to measure the success of a project. Based on the amount of money they collect, we can see the real potential of it. And the value of a coin also depends on it.

Crowdsale is very useful to shorten project time, if using standard funds then the process will become more complex, many startup projects are assisted with ICO sales, ideas and system prototype faster realized. The more projects will make the crypto rhythm appear more balanced.

they can collect some funds to make the project works into market capitalization..buyers also can save more and receive bonuses during the crowdfunding.. it is advantage to both

There are pro's and con's.

If you consider that the objective is to provide access to funding for startup's and to enable savers to invest in those startup's for profit and to support startup's then the following are some of the advantages and disadvantages.

Pro's
> Any serious startup can create a pitch, present it and hopefully generate funding.
> Startups don't have to work through templates from crowd funding companies or meet their individual requirements around history and capital and reporting and pitch materials like videos etc.
> Anyone with spare money can invest in any startup they choose. Pre-crowd funding investments were more for the elite in society, crowd funding made investments in startups accessible to everyone, ICO's are the next level making it possible for anyone to conduct their own due-diligence and invest.
> The money raised goes straight to the business raising the money, there's no one sat in the middle gving it a haircut
> It's global so anyone can invest from anywhere which is why ICO's raise such large amounts compared to country level crowd funding projects.

Con's
> Because investors have to conduct their own due-diligence it attracts a lot of scammy ICO's.
> ICO's are often run on a no-promise donation basis by which I mean they ask for money but don't promise to deliver anything.
> Scammy ICO's never mention regulation even though ICO's are becoming increasingly regulated.
> ICO's are often for research projects with no clear commercial aim so where's the profit really coming from? I'm all for supporting research but as an investor it's important that there's a commercial aim such as a profit generating product being developed to run on top of the new blockchain
> ICO's are often for a hand-full of smart contracts to run on Ethereum or a tweaked branch of Bitcoin. Ask yourself, is a few weeks work tweaking a Bitcoin branch or writing a few smart contract really worth tens of millions of dollars? Perhaps, if there's a strong commercial case for the results.


ICO's are a great way to invest and raise investment but I'd suggest always consider people who are involved in the ICO and the commercial aims of the project. If this is someone's 5th ICO then how serious are they about this ICO? I prefer new ICO's by companies with a commercial story to tell, some background history leading up the ICO project and a commercial aim.

For full disclosure I am involved in an ICO which we're putting so much effort into with regulators and legal advice to protect both investors and the business, something that so many ICO's totally ignore.

I tought to myself: Could there be any disadvantages of ICO crowdfunding for the new business? Some disadvantages already listed here, but I didn't spot anyone mentioning the old money.

I mean, if you have really, really good idea for a business and that business is not entirely crypto-related, there are many investors out there who are willing to invest in that but only in $/€/£. They may have, let's say millions of dollars to invest but are used to look at new ideas very carefully from dollar point of view. Some (many?) of them may not be willing to change huge amounts of money to cryptocurrency just to invest even if they might if the new idea would be presented to them as dollar based investment.

After all, I don't know if this is a major issue.

An ICO is an initial coin offering. A coin is a token which represents some value (promised or real. ICOs take place before a project is launched, the funds collected are used to build the product specified in the white paper.

An ICO is generally launched at much earlier stages that an IPO (Initial public offering). IPOs tend to be accessible to only high net worth investors and those within certain networks and connections. On the other hand,  ICOs are open to anybody as long as it is legal for them to participate according to the laws they have to abide by.

At times an ICO is also called an ITO (Initial Token offering)

Most ICOs have one or several white papers, that describe a business process, a new currency with added benefits or a token which gives access to certain functionally. An ICO allows investors to acquire these tokens in exchange of other cryptocurrencies usually Bitcoin or Ethereum

ICO’s are open for a period of time, during which investors can buy the new token, in most ICOs early investors are given bonuses

You could easily fund your ambitious project systematically if you managed to impress investors through existing marketing channels.

Recently projects with just a rough idea and strong backers could easily funded themselves millions worth of BTC/ETH, i had seen some projects with unrealistic roadmaps and objectives and yet had their ICO succeed, hence arguably ICO crowdfunding is the best way for entrepreneurs to kick-start their dreams.

The range of advantages extends even more if you look at smart contracts, but its irrelevant to discuss here.

To collect a lot of investors and being able to give something in return without giving away shares, or am I seeing this wrong?

Well, ICO projects have several advantages: you can raise a lot of money, you don't have shareholders, it's often faster than a regular funding