How to build a Million-dollar nest egg investing in ICO.
Most start-ups look to angel investors and venture capitalists to provide funding for the takeoff of their businesses. It is not an easy process. You need to create a solid business plan to show viability of the project, pitch the plan to the VCs/angel investors, then run the business all the way to the proposed exit plan (divestment, IPO, etc). The development of cryptocurrencies in the last 8 years has altered this landscape radically. It is now possible to use cryptocurrency units (known as tokens) to raise funds using a crowdfunding technique. Further enhancements provide incentives for the community of funders to invest in the project, which increases the demand for the blockchain-based product and hence the value of the tokens. This is the basis of operation of the Initial Coin Offerings (ICOs).
Blockchain projects have raised a total of $1.67 billion with initial coin offerings (ICOs) so far according to data from the CoinDesk ICO Tracker.