The ICO helps the user to have easy access to the liquid market. The ICO’s give us the possibility to “digitize/tokenize” any asset and trade into the global market without much difficulty. It is most likely the unique opportunity which scales and develops new ideas and products for the user in each field of application, from consumer products to technology etc. But in traditional funding, it is very difficult to raise money in the purest advanced research field.
The ICO is a very powerful tool which will help the “creators” in retaining more effective ways to control and have the ownership of ideas for their creation, where they will not require the help of the finance industry.
Major advantages of ICO against Traditional Funding:
1. There is large access to the boundless worldwide market of potential investors in comparison to the small elite venture capitalists.
2. There is lack of usual barrier and restraints that make the traditional funding difficult. There are many limitations to the traditional funding such as geographical limitations, language and cultural barriers, social class barriers etc. so, VC is a high-cost funding in terms of equity share and high share capital dilution.
3. ICO provides with the boundless liquidity of money that too in the worldwide spectrum. The market consists of coins/tokens, shares, bonds, commercial papers which could be traded.
4. ICOs democratize entrepreneurship, tokens are the democratize investment. This will do exactly the same to the investment market what the media does to the internet.
The interests of the entrepreneurs and the investors are effectively aligned by the tokens. It would be interesting to ask Bill Gates, Elon Musk or Steve Jobs if they could go back in their early days and – having this new opportunity – if they would go again with a VC or an ICO. Clearly, VC has its own advantages but ICO is more comfortable then VC at the end of the day.
