Is it possible for a company to raise funds through an ICO even if it is not a startup?
For example: Say company X manufactures chocolates but now it wants to further expand its operations and needs funds for it, can it opt for ICO instead of a Private Equity fund or a Bank Debt?
Please help I am a complete newbie and this concept is confusing me a lot
Thanks
Anybody can raise funds from an ICO. If you have a legitimate working business behind it then it can be a positive point.
The problem is that most ICO's have become scammer playgrounds where the developers simply raise money and then disappear or make a show of the impossibility/ difficulty of the problem at hand.
Additionally, with the RBI instructions to banks to desist from crytpocurrency dealings, it's harder still in India to hope to raise money with ICOs. You will need to provide a report on the source of the funds when you convert to fiat. Unfortunately, it will not be legal to convert to fiat when the banks aren't allowed to do so.
It's best to wait for the picture to get clearer and wait for any any business entity looking to use crytpocurrencies for fund-raising.
