How to attract money to a startup through ICO? Is it worth it?

Question

Startups

Hello, I recently learned that it is possible to raise money for the development of a startup through an ICO. Someone already tried? Costs? What can be pitfalls?

Answer 1

Late found out - everyone who could - has already attracted. Old topic.

Answer 2

ICO is a separate business that can be more complicated and more expensive than the startup itself.
You will have to do - mining your cryptocurrency (buy your own capacities, or somehow rent / partner), promote this cryptocurrency, attract people to the ICO, explain to the masses what cryptocurrencies are and why you attract investments according to this scheme.
On the other hand, there people seem to have collected a lot of money for complete emptiness even in formulating an idea and disappeared without a trace and any responsibility.
In general, if the task is to make a project - then do the project, if the task is to cut down the dough "for no reason" - then do the IKO.

Answer 3

It is better to look in this direction with caution. I have a familiar project that attracted so much money. The project is real, everything works. The guys did through Cyprus.
However, the very principle of ICO is up in the air. Under the issued cryptocurrency, the investor does not receive significant, practically, nothing.
Business attracts money in the following way:
1. Issues shares - PJSC, OJSC or attracts investors - LLC
2. Issue of debt securities - bonds, notes, bills
3. Takes loans
4. And other derivative mechanisms.
So, ICO is akin to issuing shares, the only significant difference is that the shares are secured by the company's assets and its future income. And in ICO there is no:
1. No assets
2. No generally accepted legislation
3. No, normal jurisprudence
4. No investor protection

Answer 4

If a startup is a real project that will bring money to both the owner and investors in the future, then you can do an ICO. There must be a good team, whose representatives have already proven themselves on the good side. And you need to take care of security so that during the ICO some hackers do not steal all the money. And if the goal is to raise money and slowly merge (something like it didn’t work out, etc.), then it’s better not to. Will find. Especially now the interest of different states in ICO has grown.

Answer 5

Conducting an ICO in itself costs so much money that more than one startup can be launched on them.