Since its advent in 2008, cryptocurrency has been widely accepted internationally, as a viable means of investment. This is notwithstanding its volatility, as the world appears to be highly interested in the sale and purchase of digital assets. For example, bitcoin currently has about 14million in circulation. Save for its volatile nature, and the period where its price drops, investors in the cryptocurrency space are often guaranteed juicy returns.
Interestingly, in mid-2021, bitcoin hit an all-time high of USD66,000 (Sixty-Six Thousand Dollars). In the same year, the formal launch of the first Bitcoin exchange-traded fund yielded investments to the tune of USD550m (Five Hundred and Fifty Million Dollars) on its first day. This clearly shows that cryptocurrency is here to stay.
While the buzz about cryptocurrency is still rife and transactions involving the sale and purchase of cryptocurrency remain popular, it must be noted that there are certain ways entrepreneurs, companies or project owners can launch or issue a new cryptocurrency product or service to the public, and in turn, raise capital. Cryptocurrency can be issued through an Initial Coin Offering (ICO), Initial Dex Offering (IDO), and Initial Exchange Offering (IEO).
The succeeding paragraph of this article examines these cryptocurrency offering options, their relevance, advantages, and drawbacks.
A) Initial Coin Offering
ICO is a type of fundraising in cryptocurrency. Similar to an initial public offering (IPO) which raises capital for a new company in its first listing in the stock market, ICO is a way in which cryptocurrency is issued to the public or in the market for the first time, usually at a discounted price in order to raise capital.
It is one of the most popular methods of crowdfunding in the cryptocurrency space and it is used to launch or offer a new cryptocurrency product or service e.g., a new token, in the cryptocurrency market. Some of the merits and drawbacks of ICOs are highlighted…
