The rapid growth of ICOs is changing the world of finance, one business at a time. An ICO, otherwise known as Initial Coin Offering, is used by companies largely to support themselves in the startup phase. The concept boils down to the same as an IPO in standard fiat economics. A business offers stakes in their company (in this case tokens) to accumulate capital and build their business, and as the business grows, it’s value raises.
The revolutionary aspect of ICOs over the long-standing IPO is that they are non-dilutive by nature, meaning companies don’t have to give up a shred of ownership in their company to fund their campaign. On top of that, ICOs live on blockchain technology, completely decentralized, so lack of being regulated by a larger institution like the SEC or the Federal Reserve. This provides a faster and easier process for businesses to generate funding.