Are Initial Coin Offerings (ICOs) Really That Complicated?

While there are highly diverse opinions about the worth and potential of this form of fundraising, one thing's for certain - ICOs have consistently proven to be a difficult concept to grasp for any person who's not particularly crypto or tech-savvy

Why? Well, unless a person is at least somewhat familiar with cryptocurrencies, good luck explaining to them what tokens and blockchain are!

ICOs inadvertently inherited the notorious reputation of digital currencies, which did nothing but further alienate them from the general public.

As you can imagine, the real disaster here is that people are missing out on a lot of opportunities to invest into projects that they would love to see realized otherwise.

And, to make matters worse, ICOs are not even that complicated of a concept - in a nutshell, think of ICOs as digital crowdfundings where, instead of regular fiat cash, people send over cryptocurrencies. In exchange, they receive tokens that get value once the developing app is actually launched.

Hoping to bring the idea of ICOs closer to the general public, the team atBTXchange put together the following infographic. It takes a look at the most important features of initial coin offerings, explaining both how this fundraising system works and underlining some of its most critical advantages when compared to venture capital.

The infographic also deals with arguably the most hotly debated occurrence within the ICO world - regulations.

Between China completely banning them earlier this year and other notable countries introducing heavy regulations to ICOsit's hardly surprising that the field has taken some serious punches in recent times. In fact, some have even started to question whether ICOs have a future at all as the looming regulations "promise" to completely get these fundraisings under control and, if they’re not able to control and tax them, simply turn them into a borderline illegal option of raising funds.

Anyhow, back to the topic at hand - we hope you find the following infographic both entertaining and useful. As you’re bound to see for yourself, ICOs are a completely unique method of fundraising and it would be a massive shame if they were burned to the ground by uncompromising regulators hoping to control and profit off of them.

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