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Let’s start with a simple story. Imagine that a group of brilliant inventors has an incredible idea for a new technological startup. They have all the skills they need to build it, but they need money to start. They need to rent an office, buy computers for their equipment and pay their staff.
This first money of money is its “starting fuel.” In the world of new technology, an initial currency offer, or ICO, is the modern form of a new project to obtain this fuel. An ICO is much more than a simple sale. It is a powerful tool that helps a new idea life.
This guide will take him behind the scene. We will break down the main reasons and give a clear answer to the fundamental question: “Why do Blockchain projects launch?”
To raise money
This is the most obvious and important reason of all. Without money, even the best idea in the world cannot be built. An ICO is a very powerful way for a new project to collect the essential funds you need to take off.
To finance product development
Most of the money raised in an ICO is destined to build central technology. This money pays the qualified blockchain developer salaries, software engineers and designers.
These are the “builders” of the project. They are the ones who write the complex computer code, create the platform and make sure that technology is safe and easy to use for people.
To cover the costs of managing a business
An encryption project is a real business, and each real business has real world costs. The funds of an ICO are also used to pay these very important expenses.
This includes paying legal fees to ensure that the project is following all the rules and regulations. It also pays security audits, which is when a professional company verifies the code for any error that hackers can use. And, of course, pay marketing, such as building a website and executing advertising campaigns to attract the first users.
But money is just half of the story. A successful ICO also provides a powerful “social fuel.” This social fuel is equally important for the long -term growth of the project.
To create a global army of followers
People who invest in an ICO are much more than a source of money. They become the first followers and fans of the project.
Because they have invested their own money, they have a real reason to want the project to succeed. They often become a voluntary marketing army. They run the voice on social networks and help the community grow from day one.
To show that people want the product
An ICO is also the best test for a new idea. If thousands of people around the world are excited enough to invest, it is a powerful test. It shows that the team is building something that people really want.
This “market validation” is incredibly valuable. He gives the team the confidence they need to advance with their plans.
To give everyone a chance
This next reason reaches the heart of what makes cryptography so different from the traditional financial world. A key response to “Why Blockchain projects are launched ICO?” It is because it is a much fairer way to finance new ideas.
Bypassing the traditional “guardians”
In the old world of finance, if I had a great idea, I had to go to large banks or risky capitalists to obtain funds. These “guardians” controlled who had the opportunity to build their dream and who is not.
ICOs allow new projects to avoid these guardians completely. They can obtain their financing directly from the public, of people who believe in their idea.
Open a global investment opportunity
Investing in a new technological startup used to be an opportunity that was only available for rich and well -connected people. Normal people were locked in these offers.
ICOs are “without permission.” This means that any person in the world with Internet connection and a cryptographic wallet can participate. It is a truly global and democratic way to let everyone invest in the future.
To start the network
This is a very important technical reason that is exclusive to the world of cryptography. ICO is not just about raising money. It is also about distributing the new token that will really feed the new Blockchain network.
Token as the “gas” for the ecosystem
The new token of a project is not just an investment. It often has a real purpose, which is called “utility.” It could be used to pay transaction rates on the network. It could also be used to vote on important decisions or access special characteristics of the platform.
The ICO is the event that carries this “digital fuel” in the hands of its first users. This is what allows the new network to start executing. This is a very important reason why Blockchain projects launched?.
Where to find and analyze these opportunities
Now that it includes the “why” behind an ICO, you can use this knowledge to be a much smarter investor.
Starting your search safely
The first step is to find these new projects. The best place to start is on a reliable platform that lists the next cryptography presales.
These websites gather many different projects in one place. They also provide the official links you need to start your investigation safely and efficiently.
Understand the story
The ICO model has existed for a long time. When studying the history of successful initial coins offers, you can learn valuable lessons about what makes a project successful. You can also learn what the common warning signals of a bad project are.
Verify the market context
Finally, you should always remember that the success of any ICO is also affected by the general health of the cryptographic market.
It is always a good idea to verify the current tendencies of the cryptography market to see if the market is in positive humor before deciding to invest in a new and high -risk project.
Conclusion: The engine of cryptographic innovation
Let’s go back to our starting fuel analogy for the last time. An ICO provides financial fuel to build the product. Provides social fuel to build a community. And provides the technical fuel to begin the new network.
Understanding why Blockchain projects launch ICO?, Can you see that it is a powerful and revolutionary way to finance the next generation of technology from scratch, with the community as a central partner. It is the very engine of innovation in the cryptographic world.
If you ever need help to analyze the strategy of a project and its potential, it is always a good idea to contact an expert analysis team for a deeper look.
