In 2017, 752 ICOs collected more than $ 5 billion, this amount for the first time exceeded venture capital investments. In 2018, the ICO attracted 10 billion dollars. The popularity of ICO is explained by the benefits for all participants of the process:
In the classical schemes of venture capital investment, the availability of capital for the team is tightly regulated and the project can not use all the opportunities for several years. With ICO, start-ups can control all processes themselves, and investors see success at the current cost of the token
ICOs are available to everyone, especially when the team takes a crypto currency. The requirements to investors in most cases are minimal – timely payment and identification of the individual.
Investing in the early stages is available not only to large funds, but also to ordinary users. It is no longer necessary to negotiate personally with the founders in order to invest money in the project on favorable terms.
In ICO, the early investors are those who have managed to transfer money before the end of the presale. The benefit of such investments fluctuates within 30% (discount on tokens).
The simple principle of financing through ICO allows almost any project to obtain capital for development. Many projects can search for funding for years using traditional methods. This may be due to the low attractiveness of the project or simply because of the location (for example, the project is based outside the centers of wealth). ICO is internationally and openly to countries where it is not prohibited.