Explainer: What is an Initial Coin Offering (ICO)?

Explainer: What is an Initial Coin Offering (ICO)?

Traditionally, if you wanted to take your business to the next level, or launch a new product or service, you’d explore funding options with a loan, a private investor, or perhaps going public via an initial public offering (IPO). However, over the past six years, the initial coin offering, or ICO, has emerged as a new strategy for companies looking to raise capital through the issuing of digital tokens.

These digital tokens may be asset-backed and represent a physical asset, or can have utility in the fundraising company’s own ecosystem. The tokens in use on the DigiFunds platform are stablecoin pegged to the central fiat currency of the regulator. For example, in the US, it is pegged 1:1 with the US dollar.

ICOs help turn ideas into reality, and using blockchain technology, provide privacy and transparency to users, so are a key part of decentralized, democratic crowdfunding. Whether you’re an early-stage business, or an established company looking to scale, DigiFunds is the platform for your funding needs.

DigiFunds has built an asset-backed fundraising platform that enables businesses to obtain sustainable and significant capital funding to scale and expand their operations. This secure model facilitates the initial coin offering (ICO) process and provides businesses with the financial backing they require to take their venture to the next level.

Asset-backed tokens provide a unique opportunity for investors from all backgrounds, regardless of their level of experience with digital assets. Users can invest in promising ventures with tangible currency, which is subsequently converted into digital tokens and invested in the business of their choice.

The DigiFunds tokens are a stablecoin pegged to the central fiat currency of the regulator. For example, in the US, it is pegged 1:1 with the US dollar.

DigiFunds is built for both small and large companies looking to raise secure funds, grow their business, and realize their full potential. With DigiFunds, businesses are not limited by the high costs and barriers to entry of bank loans, hedge funds, or private equity. Instead, digital financing methods unlock greater flexibility, potential, and opportunity. DigiFunds is a secure, verified neo-financing platform that ensures secure investment and fair market returns.

Find out more about the DigiFunds platform here.