Chances are you already heard or read about the term ICO. It stands for “Initial Coin Offering” and, to explain what it is, an analogy with the financial market is more or less mandatory.
IPO, “Initial Public Offering” has to do with the shares of a company and happens when that company decides to go for the stock market and raise money from investors in exchange for shares of the said company. An ICO is similar but, instead of being a consolidated and formally registered company, the ICO is a public offering of a cryptocurrency.
So, why go for an ICO? One of the main reasons is that ICOs get rid of some of IPOs’ biggest issues, such as the slow process of raising capital required by financial institutions or venture capital funds. In addition to not having bureaucracies to launch an ICO, this form of capital raising achieves extraordinary capillarity degrees, since anyone can acquire participation in a new startup with values that can start (literally) in a few cents.
Given that it handles with cryptocurrency, the ICO process is also related to blockchain, one of the hottest and most important technologies at the moment. Brigham Santos, CEO of SprintX, explains why:
“[Blockchain is] very important, because the current financial system has not been able to serve startups effectively for many years.”
SprintX is a company operating on this market, featuring a powerful platform for startups to easily create and launch their ICOs. Based in El Salvador, it is changing the technological landscape on that country, soon going to Venezuela as well, and offers these companies what they have been missing from the financial system, as Santos mentions:
“Starting in the LATAM region SprintX will be able to give the guidance and support that hundreds if not thousands of companies have been looking for and needed for a long time. [This platform] will lead them step by step avoiding common pitfalls that companies would face without it such as implementing their smart contract, creating their tokens all the way up to listing them on our own Exchange.”
ICOs can really be a decisive way for a startup to seek financing, without having to go through all the hurdles commonly find in the most traditional funding channels. With the help of SprintX, this process becomes even easier and faster.
If SprintX caught your eye, know that the pre-sale of its own ICO token is happening soon, so be sure to give it a look and get your hands in some of SprintX’s digital currency and become a part of this company.