Andrey Primula 02/16/2018
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Probably, anyone who has ever been involved with the crypto industry has heard the term ICO more than once.
But, most likely, not everyone knows what it is and why this technology was invented.
Let's look at the acronym first. ICO is literally translated as “initial placement of crypto coins”, in English - Initial Coin Offering.
At the beginning of the project, the team organizes the sale of tokens for crypto assets or real fiat money.
Later, after an ICO startup, coins can be used in the project as an internal payment system, as well as traded on cryptocurrency exchanges.
Sometimes, instead of the meaning of ICO, a second word is used - crowdsale, from the English word - crowdsale.
The main goal of the ICO
The ultimate goal of a crowdsale is to attract investors to the project by exchanging their tokens for Bitcoin, Ethereum or other popular currency, thus providing the project with the necessary financial base.
For all ICOs, the main task is to conduct a PR campaign in the initial stages, that is, before full-scale launch.
After this, all raised funds are used to finance the final stage of the project, as well as for management and marketing.
In some cases, a certain percentage, at the discretion of the creators, is allocated to a special fund to support the new project in the long term.
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How to participate in token sales
Depending on the platform conducting the placement and the format of the token sale, the conditions for participation may differ. Basically, to participate you usually need to be on the whitelist. Usually you can get there by completing several tasks (subscribe to Telegram, Twitter, repost, etc., the more tasks you complete, the greater the chances of getting into the whitelist), then filling out a special application and then participating in some kind of lottery to get into the whitelist . Sometimes you still need to stake (that is, have on a special deposit) the tokens of the launchpad on which the token sale is held. But there are launch pads that work according to other principles, so here you need to look at the conditions for each individual site, in each individual token sale.
In general, it is quite difficult to participate in good token sales. Typically, for this:
- you need to work a little (complete tasks for the whitelist application, pass verification, etc.)
- you need to have funds for staking launchpad tokens (and, often, considerable ones)
- have the luck to win the lottery (and the chances are sometimes extremely small)
So, if it’s so difficult to take part in a token sale, then why do we need all this? I'll explain now
