Why Do Existing Companies run ICO?

[omitusaf]

Lately, we have seen a mass inflow of startups into the cryptocurrency world, running ICOs as a way of generating capital. However, I have also noticed that some existing companies are beginning to launch their own ICOs.
My question is, why do these companies run ICO? Is there any need for it actually? Why don't they use bitcoin if they want to enter the cryptocurrency world?

[benh]

I think that even existing companies can use an ICO to raise capital more easily than a traditional IPO or from the VC circuit.

[slaman29]

Lately, we have seen a mass inflow of startups into the cryptocurrency world, running ICOs as a way of generating capital. However, I have also noticed that some existing companies are beginning to launch their own ICOs.
My question is, why do these companies run ICO? Is there any need for it actually? Why don't they use bitcoin if they want to enter the cryptocurrency world?

Actually, ICOs are the latest method to raise funding for a business. To me, all these huge ICOs that are NOT existing companies or businesses have really no justification to launch million-dollar ICOs to collect so much money for such loose ideas on some whitepaper that may have takens days to write, with marketing stuff taking hours to write, and with an ANN post that someone else took 15 minutes to write.

REAL companies and REAL businesses have justification to launch, to raise more funds to expand and grow. They have a running operation and need more funds to move into the next level.

[Bemi2017]

This is a good question, many individuals and existing companies now see icos as a fast way of making money.

Many of them after raising huge amount of money trough ico will abandon the project which is very very bad.

[Singbatak]

ICO or Initial Coin Offering is the easiest way to make easier the sale of Coins because it has bonus coins per level. Of course if it's been listed on the exchanger the bigger the profit you can get because of the extra coins you bought at ICO just yet

[Nick7815]

I think they want not only gain some additional capital but also they want to see/check out if they to be next "big thing". Who wouldn't be attracted by the opportunity of possibly becoming super big?
Another point is that it's probably a lot more easier to hire a few devs for developing your own crypto than to make an IPO and get listed as a stock

[xIIImaL]

Lately, we have seen a mass inflow of startups into the cryptocurrency world, running ICOs as a way of generating capital. However, I have also noticed that some existing companies are beginning to launch their own ICOs.
My question is, why do these companies run ICO? Is there any need for it actually? Why don't they use bitcoin if they want to enter the cryptocurrency world?

They just doing to make profit like all ICO investors doing to it. There are many gambling site and trading site implementing ICO tokens sale for them. Recently you find the tokens of yobit ico tokens. There are also the one of the best trading community in crypto market.
All the ico coins has been created based on eth smart contracts projects alone. So it won't able to use as a bitcoin splited coin list.

[xebecstyx]

I think they are doing it to try and test the bitcoin market without risking too much capital on it. If they will directly buy and use bitcoins without testing how it works, even established companies may have a bit of qualms because losing money is always a blow even to big and long-time companies.

[CjMapope]

They do it to take a buttpile of money with little to no risk.
ICOs tho this is being regulated NOW, have been in a legal grey area for the last 12+ months, you have ZERO consumer protection, unlike a regular stock.
They can sell unsecured shares, hawk hopes and dreams, and you have had no repercussions if they do nothing but keep your money as the ONLY legal stipulation was that you recived SOMETHING, even if it was a steaming pile of shit

[nappoleon]

Mostly to raise capital of course. Conducting an ICO significantly lowers the entry barrier to participate comparing to the traditional route such as goin public or serenading a venture capital. In this way, it will create a massive inclusion rather bureaucratic proceedings which is too slow.

[Cnut237]

One reason is that an ICO is the best way to generate interest in the cryptocoin community. If they launch a coin without an ICO, then for example nobody on this forum would know about it. But if they have an ICO with bounty campaign etc, then they generate interest within the community, and spread the word amongst people who would be interested in the coin.

[camelson]

Lately, we have seen a mass inflow of startups into the cryptocurrency world, running ICOs as a way of generating capital. However, I have also noticed that some existing companies are beginning to launch their own ICOs.
My question is, why do these companies run ICO? Is there any need for it actually? Why don't they use bitcoin if they want to enter the cryptocurrency world?

Well the major reason behind running an ICO is to generate funds for their company. For the growth of the company it is very necessary to have money for promotion and online offering of shares is the best method now a days and companies can be very benefited from this strategy lately.

[helin9108]

Most of companies have initial coins offering for raising the fund from people and in return provide the individual good share of profit on their respective investment. And also new ICOs have been coming from more companies frequently these past few months due to how easy the Ethereum network makes it to create and sell your own set of crypto-assets or “tokens”.These companies are working on decentralized applications, often using blockchain technology as the main backbone.And one more benefit for ICO for that company that company also will do marketing for their product.

[Ranly123]

This is the new way to raise their funds than the traditional IPO's. Using icos for existing companies is a big help in cryptocurrency since they give more opportunity to those who started crypto.

[btcbringer]

do you know how hard it is to get money from the VC institutions? raising money through ico is the easiest way and don't have to take on much responsibility, if you fail, you lose nothing, but if you success, you will soon change your life i promise

[onurgozupek]

ICO's are great opportunity to collect money. China has banned ICO's because of this. The companies who can not collect money from IPO's run ICO's which is easier, cheaper and tax-free. Also ICO's have no legal responsibilities...

[arjuna BTC]

with ICO the existing company will got more capital easily,
also i think investors will convidence if they invest on existing company that already run

[batang_bitcoin]

Lately, we have seen a mass inflow of startups into the cryptocurrency world, running ICOs as a way of generating capital. However, I have also noticed that some existing companies are beginning to launch their own ICOs.
My question is, why do these companies run ICO? Is there any need for it actually? Why don't they use bitcoin if they want to enter the cryptocurrency world?

It's a win-win situation for those companies, they will run an ICO in able to collect fund or which we know as crowdfunding. They'll likely give their customers some benefit on it and as well their investors and customers will give them the benefit of running an ICO. It's likely a membership or something the same like that. Nothing special for running an ICO when they found it out that it's profitable.

[kumiskura]

ICOs is created to raise their financial and start up,
while they're an existing companies,why would they want to run an ICOs?
because they want to double their size,which mean they need a double expenses to make it real.
that is why an ICOs exist.
they have their own money to expand it,but it's not a wise move if they do not have any back up for their running project.
also with it they can generate a lot of profit in the process by doing their offers

[ask]

Companies needs funds for more investment and growing purposes.
If you need big budget to grow then crowdfunding is a nice option beside banks.