How does an ICO make money?
How does an ICO make money? That is a very common question for those who are thinking about starting an Initial Coin Offering. This alternative funding mechanism is a great way for small companies and startups to raise money without having to ask for a bank loan, for example. To answer the question in a very simple way, an ICO is just like a crowdfunding, so it makes money by raising funds from people who believe and want to invest in a project or company. And, in return, the investors get an amount of token proportional to the money they invested. Now you must be thinking about how the whole ICO process works, right? To start, needless to say, there must exist an idea or strong idea and plan to be executed that can catch the eye of potential investors. After that, these are the phases of an ICO launching: Ideation & Whitepaper Creation - Every ICO has to have a Whitepaper. A document where the company explain all about their project, what problems they want to solv...