Which is the best option for a project to raise funds?

An offering is basically a marketing term that denotes the issuance of a company’s securities at times when its profitable shares are made available for purchase to the public.

The various kinds of offerings available at the market today for a company to raise funds needed for its business growth or development include IPOs, ICOs, STOs, and IEOs.

With the immense market craze of cryptocurrencies in the year 2017, ICOs went global and gained enough buzz in the crypto business space. But due to the lack of regulatory regimes, they have been facing a lot of scam or fraudulence concerns in the market over recent years. This has made the investors become skeptical of the industry.

The regulators around the World have tried to protect investors and to address the challenges of ICOs by stepping their efforts in establishing some crucial regulations in the world of investments. As a result, STOs were getting into the market with absolute regulations and with a pass in the Howey test. They have made the scams hard to exist.

ICOs not only paved the root for the emergence of STOs but also the IEOs. A unique feature that the IEO models bring in to the investment market is liquidity. 

IPO:

Initial Public Offering is a traditional fundraising model that signifies the fact that a privately-held company is going public by selling its shares to the institutional or retail investors for the first time in the stock markets like Nasdaq or NYSE (New York Stock Exchange). It gives rise to the chances for secondary share offerings in the future.

ICO:

Initial Coin Offering is a kind of cryptocurrency funding mechanism that allows startup companies to raise their business capital rates by selling tokens or coins to the investors or speculators in exchange for some other standard fiat or cryptocurrency types such as bitcoin, litecoin and ethereum and so on. It has been revolutionizing the upcoming economic/financial models for a variety of businesses across the Globe.

IEO:

Initial Exchange Offering is also a kind of fundraising mechanism, where a third party or partnering cryptocurrency exchange works by selling tokens on behalf of a blockchain startup.

STO:

Security Token Offering is a token sale process with enhanced security. In an STO, security tokens are issued to the investors in return for their valuable investments. STOs came as gifts for those investors, who are more serious in their investments as they are highly regulated and secure.

Chief differences - IPO, ICO, STO, and IEO:

·         In general, well-settled or developed companies make IPOs or STOs, whereas the new startups make ICOs or IEOs.

·         In terms of offerings: IPOs account for share trading, whereas ICOS, IEOs, and STOs account for token or coin trading.

·         IEOs, STOs, and IPOs possess significant mitigation towards the legal risks but ICOs do not.

·         STOs and IPOs are highly secure with enough regulatory standards, whereas, IEOs, and ICOs are not that much regulated (less-regulated).

·         IPOs offer stocks to the shareholders/partners, whereas the STOs, ICOs, and IEOs offer security and utility tokens to the investors.

·         In cases of IPOs, ICOs, and STOs, the concerned company possesses a direct control over the token sale event. But, in the case of an IEO, an intermediary exchange controls the token sale process to represent a startup company.

·         STOs are highly transparent and secure with faster listing abilities in comparison with the alternative fundraising mechanisms like ICOs, IPOs, and IEOs.

Conclusion:

Every fundraising option has its own unique merits and demerits. So, do perform deep research and always be cautious before selecting an option for making investments.

Though ICOs have some security concerns on one side, they have a lot of advantages on the other side. 

Thus, a promising, simple and recommended option that suits the best for all kinds of businesses with considerable benefits is the ICO. 

In order to launch your ICO, you can better go for a market-leading ICO service provider like Shamla Tech. If you do so, then they would certainly help you out with exceptional ICO development services that you have ever seen before in the market.

A DYNAMIC FORECAST ON THE FUTURE OF FEATURE-RICH CRYPTOCURRENCIES

With the increasing demands and buzz around the cryptocurrency concepts in today’s modern world, people from different parts around the Globe have started trying to find the future scope of such cryptocurrencies to forecast their actual worth in the blockchain domain. 

The trend of cryptocurrency predictions came into existence since the first and most trusted cryptocurrency called bitcoin got exploded in the trading market with tremendous success in the year 2017.

Recent researches have revealed the fact that bitcoins (BTC) are expected to make a renovation in the blockchain business space with a massive hit of around 1 million US Dollars ($1 million) by the end of the year 2020. This is what the case of similar other cryptocurrencies too in the years ahead. 

Major futuristic technological predictions related to cryptocurrencies:

Increase in the adoption of blockchain technologies:

Governmental organizations seem to adopt the highly advanced blockchain-based decentralized technological applications soon to make their existing tedious operations simple and effective. In particular, the cryptocurrencies will be going to influence the government sector in planning and managing their sensitive data and cash flow.

 

Integration with IoT:

With great collaboration with IOT (Internet of Things) cryptocurrencies are expected to come out with inflated potential abilities in the future.

Enhancements in trading:

There will be some considerable improvements in the trading potential with cryptocurrencies in the future with a consistent increase in cryptocurrency market price values. 

Reduction in disruptions with banking operations:

The banking domain is now gradually implementing cryptocurrencies in their transactional procedures, and which will, in turn, lead the banks to diminish their operational intricacies in the future.

Advancements with transactional speed:

Cryptocurrencies will be much more open to faster and instant money transfer options in the future. 

Cryptocurrency Legalization predictions:

Though cryptocurrencies are getting familiar and gaining the attention of the entrepreneurs day by day, we cannot deny the truth that they are not accepted yet as legal currency types in most of the countries in the World. Anyhow, it is strongly believed that the immense growth of cryptocurrencies will eventually make more and more countries accept them as legal ones in the next few years without any doubt.

Future expectations over cryptocurrency usages:

On the business perspective:

·         Businesses will make service payment remittances with cryptocurrencies, instead of going to pay with cash or some other currency formats.

·         Entrepreneurs will cut down and save the third-party service charges by eliminating the middleman interferences.

·         All sorts of existing fiat-based business transactions will be getting replaced with crypto transactions.

On the users’ perspective:

·         The ordinary users will start to make use of the cryptocurrencies to manage their money transactional flow.

·         The end-users or consumers will come to get their products/services delivered at cheaper rates than before.

·         Cryptocurrencies will evolve as a premier cum safest means of making reliable investments for the users, rather than going to invest in commodities like Gold. 

Conclusion:

If we take the statistics of cryptocurrencies before a decade, no one was aware of its benefits. But now, things get much better in terms of wide cryptocurrency usages. Likewise in the future, everyone will be aware of the whole cryptocurrency concepts and also, all kinds of businesses will start to use cryptocurrencies for their venture transactions. Hence with no doubt, cryptocurrencies will eventually revolutionize the global economy of future business models with eye-catchy benefits and advantages.

Want to develop cryptocurrency with unique features to make your business more profitable ever than before? Then start trying to find the best cryptocurrency development company available in the market. 

As an industry-demanding crypto development services provider, Shamla Tech offers custom cryptocurrency development services with utmost quality. Let us talk to our experts now itself to start raising funds for your crypto venture.