The impact of the economic revolution that Bitcoin brought to the network has grown in such a way that nowadays, many startups began to change the way of considering current problems and solutions in the hand of new technologies and cryptocurrencies. Initial Coin Offering (ICO) are an unregulated means by which funds are raised for a new cryptocurrency venture. Investopedia indicates that the ICO’s are used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks. But then, what does it mean that startups are taking ICO’s into account to create new business models?
Ameer Rosic, from Block Geeks, says that ICO’s mean that someone offers investors some units of a new cryptocurrency or crypto-token in exchange against cryptocurrencies like Bitcoin or Ethereum. Since 2013 ICOs are often used to fund the development of new cryptocurrencies. The pre-created token can be easily sold and traded on all cryptocurrency exchanges if there is demand for them.
Many entrepreneurs and startups are using this ICO’s technique as a method to get work and virtual funds. Many of the people who work in this new job receive their monthly compensation in cryptocurrencies and have the possibility of using these cryptocurrencies to make payments, collect profits or perform different types of financial transactions. It is worth mentioning that, in addition to having these facilities, you can also exchange the fractions of cryptocurrencies for regular currencies, such as the US dollar or the Euro.
This new revolution has begun to create real virtual money-making machines. Many startups see in this market niche a unique opportunity to contribute, both to the growth of cryptoeconomics, and to their personal economy, both digital and real. It is certain that we will see many changes in the coming months. As fast as Bitcoin has managed to be a trend, it will be possible to notice changes in the global economy thanks to cryptoeconomics.
Finally, it is important to emphasize that these startups are providing work to hundreds of young programmers or systems engineers who exploit their talent at the ICO’s mine. The international economy is about to take an unexpected turn and we will witness it. Are you ready?