Tokenize Real Assets by using Reverse ICOs
Reverse ICO
Reverse
initial coin offering (ICO) is a method used by existing, established
real-world businesses to raise funds and get into cryptocurrency. These enterprises have existing products
and/or services, and they cater to real world customers. Essentially, reverse
ICO acts as an initial public offering (IPO) allowing an existing enterprise to
launch cryptocurrency
tokens and seek funds through crowdsourcing.
The process
for a reverse ICO works exactly the same way as for a standard ICO, though it
is said that their valuations are easier and more transparent. When people
pour their money into a standard ICO,
the track record of real-world, established businesses
offer a better and more trustworthy proposition for valuing reverse
ICOs.
Reverse ICOs tokenize real assets
The reverse
ICO first acquired people’s attention in South Korea. However, many anticipate
that it will spread to other nations as investors continue to find worthy
projects from tested firms that have successfully managed to achieve user
growth and profit as well as technical IP and in-depth domain knowledge.
The primary
advantage of a reverse ICO is that the company behind the ICO already has a
working business model with users, technology, and key partnerships. This is a
distinct alternative to the “built from a white paper” model presented by most
ICOs, where the go-to-market strategy, including product development and user
acquisition, is unproven and therefore both more risky and demanding in time,
money and resources.
Further,
reverse ICO provides an edge in the industry by providing leverage in the
adoption of the cryptocurrency. The method of buying and selling
cryptocurrencies is still riddled with many difficulties, with technical and
trust issues yet to be resolved. The process of providing existing users
integration is not just convenient, but also a better option compared to
generating a new user adoption.
An
established company that has deep knowledge of their customers can use the right
motivational triggers and desirable outcomes to incentivize users to cross the
not-insignificant hurdles that persist to understand and effectively use
cryptocurrencies for products and services they are accustomed to purchasing
with fiat.
Benefits of Reverse ICO
·
Both customers and investors receive enhanced value
proposition from a reverse
ICO. The company that is putting it together already has an established
user- and customer-base, hence; market entry is a lot easier and facilitated in
advance.
·
A company’s infrastructure is arguably among the most
important aspects of a successful business. With reverse ICOs, the project
relies on an already established team of professionals who, most importantly,
are presumably used to working together.
·
Enhanced value proposition for investors due to the
presence of existing human capital and operational infrastructures such as
accounts receivable, logistics, legal compliance, and customer support.
·
Existing companies, unlike startups, have a measurable
track record. Investors can easily take a look at their performance over time
and determine whether or not they are worth investing in.
Difference
between ICO and Reverse ICO
·
ICOs are done by startups that have no market history
.However; Reverse ICOs are done by well-established organizations that have an
enduring history on the market.
·
ICOs have no user or customer base; Reverse ICOs have
solid user and customer base, which further can increase by reverse ICO.
·
ICOs are done by the companies that lack existing
products or services. Reverse ICOs are done by companies that have a number of
existing products and services in the market.
·
ICOs have no recognized team of professionals while
Reverse ICOs have established teams of professionals.
·
ICOs have the risks of project failure or being scam,
but Reverse ICOs are deemed to be secure and failures are close to
non-existent.
Thanks for reading our content. For
more details visit our website;
Crypto App Factory
101, Kumaran Colony, Vadapalani,
Chennai.
+91 7397224461
Comments
Post a Comment