An Initial Coin Offering (ICO) is the process of raising funds to finance the development of a cryptocurrency project and a new coin, application or service. ICO was popularized in 2014 with the fundraising success of Ethereum. The popularization of token standards such as ERC-20 has made it easier to develop new cryptocurrency projects and raise funds.
ICO is the general name given to the process used to raise funds through cryptocurrencies. It is used by blockchain-based platforms for cryptocurrency projects. ICO is carried out through exchanges or launchpad platforms that bring together investors and are used to finance cryptocurrency projects. Cryptocurrencies are traded on listed exchanges after the ICO process.
Companies entering the ICO process create blockchain-based tokens to sell. Investors buy tokens and companies raise funds to develop their projects. Through ICO, investors have the opportunity to buy cryptocurrencies cheaper in the early stages of cryptocurrency projects. Cryptocurrencies can provide the opportunity to benefit from the products and services offered by companies.
ICO and IPO are different fundraising methods. ICO is a way for companies to raise funds to create a new service or product. An IPO is usually when existing companies sell partial ownership of company shares to raise funds.
How Does Initial Coin Offering Work?
When cryptocurrency projects seek to raise funds through an ICO, the first step is to determine how the fund will be structured. ICOs can be structured in several different ways:
- Static supply and price
- Static supply and dynamic price
- Dynamic supply and static price
Fixed Supply and Price
A company that wants to take the first step for its project can set a funding target. In other words, the price of the cryptocurrency sold in the ICO is predetermined and the aggregated supply is fixed.
Fixed Supply and Variable Price
The amount of funds received in the ICO determines the overall price per cryptocurrency.
Variable Supply and Fixed Price
The amount of funds received determines the supply.
How Is Initial Coin Offering Done?
In order to make an Initial Coin Offering, a cryptocurrency must first be created, a date must be set and rules must be set for the sale of cryptocurrencies. To raise funds, one must have a cryptocurrency project that investors want to support. The following stages are needed during an ICO process:
- A technical review summarizing the project
- A roadmap
- Research on other ICOs
- Website
- Social media
- Marketing campaign
The most important step is to have a successful and dedicated team.
How Does the ICO Process Work?
The ICO process can work in different ways.
- The company that wants to do an ICO may have a functioning blockchain network that it will continue to develop. In such a case, users can buy cryptocurrencies that will be sent to their address on the blockchain.
- Companies whose blockchain network is not yet live and whose cryptocurrencies are running on another blockchain network can do an ICO. When blockchain networks go live, cryptocurrency holders can exchange their holdings for cryptocurrencies issued on the new blockchain network.
- Cryptocurrencies can be issued on a smart contract-compliant blockchain network. This is usually done on the Ethereum network using the ERC-20 standard.
The rules set out how the ICO will be run. These rules may set a cap on the cryptocurrencies to be sold or set a timeframe for the ICO.
Why Should Companies Do ICO?
ICO helps companies to sell services to their investors in the future. Through ICO, companies can obtain funds to develop their projects and provide management of their projects. Companies can raise funds from all over the world with ICO without having to find investors for their projects. The success of technological initiatives is related to their first launch on the market. Therefore, ICO is considered an important step in the success of startups.
What Are the ICO Advantages and Disadvantages?
There are many advantages that ICO offers:
- ICOs offer the potential for high returns when invested well.
- There are no restrictions on who can invest in ICOs, anyone can access them.
- ICO is a fast and efficient way to raise funds.
ICO has some disadvantages:
- There is a risk that the cryptocurrency created by the project may lose value or fail.
- In order to invest in ICOs, you should be familiar with crypto asset wallets. Otherwise, investments may not turn out well.
What Is Pre-Sale?
Pre-Sale is a concept that describes the opportunity to buy cryptocurrency before they go into circulation. Cryptocurrencies are offered to investors through pre-sales while they are still in development. A pre-sale usually takes place before the ICO. Pre-selling is carried out by developers in anticipation of a price increase when the cryptocurrency goes public. The pre-sale allows the developer to publicize and market their project and draw attention to it.
Metatime Coin (MTC) in Pre-Sale Process
As Metatime, we are ready to face investors with our native cryptocurrency Metatime Coin (MTC). Metatime Coin pre-sale book building process will take place between March 3-13. Investors who create demand during the pre-sale process will be able to own Metatime Coin with a 3 percent bonus. Unlike other cryptocurrency pre-sale processes, Metatime offers investors the first and only 100 million 'non-vesting' Metatime Coin pre-buying opportunity.
During the MetaAirdrop process, a total of 200 million Metatime Coins will be distributed and the process will continue for 10 months. The MetaAirdrop process will start on March 3, 2023 and will continue until January 1, 2024.
