The once highly sought after method of raising funds in the cryptocurrency space, ICOs, are on the backburner.
Following ongoing regualtory uncertainities in the US market, token offerings are migrating.
This might well be a death knell for ICO’s because they have already been waning in popularity and the current US exodus of token sale will land a heavy blow on them.
What is an ICO?
For traditional companies, there are a few ways of going about raising funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners but having to wait for funds to build up. Alternately, companies can look to outside investors for early support, providing them a quick influx of cash but typically coming with the trade-off of giving away a portion of ownership stake. Another method sees companies go public, earning funds from individual investors by selling shares through an Initial Public offering (IPO).