What is ICCO and how is it better than ICO?

What is ICCO and how is it better than ICO?

Author: Robert Strickland (crypto expert)
  • What is ICCO and how is it better than ICO?

Let's understand the term ICCO and determine what makes it superior to an ICO. What is an ICCO?

ICCO (Initial Convertible Coin Offering) - is an initial offering of convertible coins. The difference from ICO here is the word "convertible", what does it mean? Every investor who has purchased tokens during ICCO receives the right to exchange them for shares of the company after a certain period of time. This feature has several advantages over the old crowdsale model.

  • Advantages of ICCO

The first and main advantage is the higher reliability of sold tokens. In the case of conventional tokens, the owner does not get any rights and has to hope that the company will do well. ICCO gives a guarantee of getting a more secure asset.

The second advantage is that the stock is subject to more regulation, which means the most security. Previously, large investors were wary of cryptocurrency project tokens because the lack of regulation has saturated this area with uncertainty and fraud. In the case of ICCO, they won't have to worry about that now, as their tokens have rights.

  • Prospects for ICCO

According to most cryptocurrency market participants, the growth of quotations should be triggered by the influx of institutional money into the industry. However, without proper regulation, large investors are afraid to enter this market. ICCO can be an intermediate solution between the complete absence of regulation and its presence. Having the right to exchange tokens for shares, institutional investors will be more confident in the safety of their funds.

If you take retail investors, for example, ICCO is attractive to them for the same reasons. The only difference is that at ICCO companies can set high entry thresholds, which will exclude small investors. This option allows the existence of ICO and ICCO in parallel with each other.

While in the world is carried out only one ICCO, and to make any conclusions early. We need to monitor developments and wait until such events will be held on a mass scale.


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