Before we know how powerful the investment in an ICO is, it is very important to understand what exactly is meant by the term. ICO stands for Initial Coin Offerings and in simple words; we can say that these are the children of the cryptocurrencies. There is no denying that they have become all the rage these days and according to a report by CoinDesk,
So far in 2017, blockchain entrepreneurs have raised $327 million through ICO offerings, a figure that now exceeds the $295 million raised through VC funding.
A number of new projects have raised hundreds of millions of dollars within a few hours and evoked so much enthusiasm that the transactions got clogged up.
We can infer that the term ICO is actually inspired by IPO, however, the practice between the two is very different. The simplest way to understand this term is that it consists of crowd funding from the blockchain as the investors buy the tokens which are the units of the digital currency. An application is then built from it with the bet that it is going to bring value to the blockchain community. As one can infer, the more value the project brings, the higher the price of the coin the project represents.
Even though the industry seems to be promising and is garnering a lot of attention and finances, people are still reluctant about the ICOs thinking that the legal infrastructure or a regulatory authority might eventually intervene. More than $350 million has been raised through ICOs but in most of the cases, the project has yet to be developed.
One of the most promising ICO’s of 2017 is Redemption Technologies and they are launching their very own ICO using BUZZ Tokens on the Ethereum platform. BUZZ Tokens will be traded for goods and services from merchants around the world.
Redemption Technologies has developed the Redeem platform that allows merchants to accept cryptocurrency without being paid in a cryptocurrency. It’s basically a secure and reliable platform for merchants who are reluctant to conduct sales using cryptocurrencies.
The major issues which bring the skepticism of ICOs in question have been dealt with by Redemption Technologies. The subscribers or the buyers never make a direct payment to the merchant, because the money it sent from Redemption Technologies.
Advertisers can track the exact amount of purchases made by subscribers allowing them to track their ROI for the advertising purchased. In addition, subscribers remain anonymous during the transaction. Transactions take place in real time so it’s as easy as using a credit card. The company allows merchants to get paid in the currency of their choice thus, allowing them to accept cryptocurrencies without having the need for cryptocurrency wallets.
There is a lot of complexity involved in cryptocurrencies and ICOs but Redemption Technologies is inclined to make things simpler and easier to understand with BUZZ tokens. The company will allow them to be used by 4.7 billion mobile devices through a number of iOS and Android applications. Investors are starting to take a hard look at the long-term viability of the companies behind them and Redemption Technologies certainly fits the bill.