Initial coin offerings, commonly referred to as ICOs, are the newest trend in crowdfunding. They are mostly used by startup companies.
The main reason why they use this revolutionary way of gathering money is that intermediaries such as venture capitalists, banks, and stock exchanges can be avoided.
BTXchange created a handy infographic showing the most important events during the 5-year history of ICOs.
It all started in July 2013 when Mastercoin conducted the first reported ICO. Since then, billions of dollars have been raised as ICOs continue to grow.
More precisely, $103 million was raised in 2016, $1.25 billion in 2017, and an astonishing $13.7 billion only during the first five months of 2018.
ICOs have experienced this enormous growth due to the many advantages they have, such as:
They are open to the public;
People can help shape the future of crypto ecosystem through them;
The tokens can be bought at a low price.
However, ICOs also have several disadvantages:
Investing in them may be risky;
The majority of ICO inventors are enthusiasts;
Investors could lose all their money.
Check the amazing infographic below which will help you understand more about ICO roundups.