Welcome to the Exciting World of ICOs!

If we put cryptocurrencies and blockchains aside – both of which, after all, share a lot of common ground with digital fundraising – there probably isn’t a more polarizing technological field in recent history than Initial Coin Offerings (or ICOs for short).

Initial Coin Offerings allow literally anyone who’s interested to offer up their Bitcoin, Ethereum or other cryptocurrencies in order to fund an ongoing, developing project. And, if the project turns out to be a success, everyone who funded it receives a proportional return on investment in the form of a new cryptocurrency that has value within the confounds of the project in question.

If it helps with getting your head around it, think of ICOs as a digital crowdfunding mechanism.

While some are praising ICOs and crowning them as a game-changing way of raising funds without venture capital, others remain wary of the fact these kinds of fundraisers remain mostly unregulated and plagued with thefts, frauds, and failures.

And you know what? Both of these points of view are well-founded. However, while there’s no going around the fact that a lot of Initial Coin Offerings failed to develop for one reason or another, do more traditional forms of investing in early startups always pan out as success stories?

Obviously, focusing on failures does no justice to ICOs that actually managed to deliver on their promises – after all, Etherium, the world’s second most popular cryptocurrency and the basis of countless promising projects, started out as an Initial Coin Offering itself back in July 2014.

The best way to both preserve the reputation of ICOs and help people avoid suspicious projects is educating the public about this revolutionary method of fundraising.

The following infographic, brought to you by BTXchange does precisely that. It manages to do so by unbiasedly presenting you with both the good and the bad side of this unique way of acquiring initial funding. Hopefully, the infographic will be able to truly help you get a strong grasp over the concept of ICOs and make you precisely realize why so many are excited by what digital crowdfunding brings to the table.

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