The Importance of ICOs in the Crypto World and How They Work

Rancakmedia.com – The world community is quickly reported to prefer investing in crypto. Especially during an epidemic like today, this is shown by the tendency for the number of people investing to increase.

Wrestling in the crypto world is a choice of some today. Well, in the crypto world you will find many words, like ICO crypto. Then what is ICO crypto?

What are ICOs?

An ICO in the Crypto World is an attempt made by a company in the process of obtaining cash. However, ICO execution is mainly done by blockchain startups. At this time, the company will issue its own token which can then be exchanged on the exchange platform.

How ICOs Work

How ICOs Work

The way ICOs operate themselves is from the funds raised by the company through the distribution of tokens. The tokens are then distributed on the exchange platform so they can be exchanged.

In exchange, token holders will benefit from the company, which may be in the form of access to certain services or ownership of capital in the company. The token that allows access to the service is known as a utility token. Meanwhile, tokens that show ownership of capital are called security tokens.

One, the practice of ICO provides the potential for you to generate significant income. However, it is highly likely that an ICO can cost you significantly. This may happen if the ICO is a scam or the company has poor business performance.

Therefore, before joining, Sahabat Pintu must fully understand what ICO crypto is. Apart from that, you should also understand how to utilize crypto wallets and exchange sites.

Regarding regulation, ICO is now under the Financial Services Authority (OJK) (OJK). The reason is, ICOs are issued by utilizing assets in the form of tokens, not shares. Meanwhile, BAPPEBTI considers ICO tokens as futures investments.

Since the regulations are not that strict, unexpectedly many people believe ICOs are like fraudulent operations. What's more, ICOs function purely on digital platforms which makes it difficult for the public to sue publishers if they suffer losses.

Conclusion Regarding the Importance of ICO in the Crypto World and How It Works:

An ICO in the Crypto World is an attempt made by a company in the process of obtaining cash. The company will issue its own token which can then be exchanged on the exchange platform.

In exchange, token holders will benefit from the company, which may be in the form of access to certain services or ownership of capital in the company.

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