With the recent closing of the highly successful ICO for Iconomi, which raised a little over $10.6 million making it the 11th highest funded crowdsale project of all time, it is useful to assess whether ICOs present risks for all involved or represents a new way to turn the conventional financing methods for startups on its head.
Thanks to the trustless security blockchain technology have provided cryptocurrency users, many new startups with big ambitions are turning to ICOs as a source of funding rather than seeking funds from traditional sources, such as venture capital or bank loans.
Travis Scher, an Investment Associate at Digital Currency Group, realizes the potential disruption ICOs could cause, but is also hesitant regarding the issues ICOs have in their current state, stating that, “This new fundraising approach, while still in its infancy,
Read more ... source: TheBitcoinNews
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