An Initial Coin Offering (ICO) is an unregulated way to raise funds for a cryptocurrency venture.
ICOs are great for startups who want to raise money, but bypass the ultra-regulated processing that’s required by banks. ICOs can be compared to IPOs and crowdfunding. Like IPOs, a stake of the startup or company is sold to raise money for the entity’s operations during an ICO operation. However, while IPOs deal with investors, ICOs deal with supporters that want to invest in a new project much like a Kickstarter campaign. But ICOs differ from crowdfunding in that the backers of the former are motivated by a prospective return in their investments, while the funds raised in the ICO campaign are considered donations.
The way one makes money through an ICO is by selling percentage of the cryptocurrency to early backers in exchange for legal tender or even other cryptocurrencies, like Bitcoin. It’s similar to getting investor money to finance your business.
Garza & Harris works with cryptocurrency startup firms that want to raise money through an Initial Coin Offering (ICO). We work with you to create a plan on whitepaper which will state what the project is, what needs the project will fulfill, how much money will be required to complete the project, what percentages of coins will be sold off, what type of money is accepted, and how long the ICO campaign will have to run.
During your ICO campaign, Garza & Harris will help you gather backers for your firm’s initiative. They will buy your cryptocurrency with virtual coins called tokens, which are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the fund’s requirements are met within our timeframe, the ICO is deemed successful and we can use the money continue working on your business from there.