Read the most recent news on ICOs and STOs.
Initial Coin Offerings (ICOs) made global headlines in 2017, when they raised more than $6 million collectively. At the time, a lot of Wall Street financial gurus thought that cryptocurrency and ICOs were just a financial bubble that was bound to burst. But, they were left to rue their words. Raising $14 billion, ICOs in 2018 not only surpassed, but managed to double the amount from the previous year.
In a nutshell, a crypto token is an entity with value that has been predefined by the eminent. For instance, if you’re issuing tokens for an IT/tech startup, the value of one token can be equal to the yearly subscription of software. You can issue tokens for everything. You can even tokenize yourself, and the holder will be able to use his token for an hour of your services.
This is a difficult question. The simplest answer is: tokens cannot be used as a currency. Unlike cryptocurrency, issuing tokens doesn’t require creating a blockchain. With ICO tokens, you just use an existing cryptocurrency. Typically, Ethereum is used to issue ICO tokens as it was originally designed to be a smart contracts platform but later evolved into a crypto-currency.
A crypto coin is like money, a medium of exchange that has a defined value. On the other hand, a token symbolizes a contract. Its value isn’t pegged with any dynamic market criteria, such as gold price or mining.
Ok, so an ICO token is not a crypto coin. But what regulates the value and transactions of smart tokens? How does the platform work? To answer these questions, here are the details of a full smart contract cycle:
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