In the last half decade, many innovative ideas of financial transactions came into existence. These innovative ideas of online money transaction kept the interest rates offered by the major banks far behind. The peer-to-peer lending companies started the idea of investing in the consumer credit and individual investors have started gaining lots from it. It is now an open source project and a new peer-to-peer currency came into use- the ico’s or initial coin offering, a kind of funding utilizing cryptocurrencies.
When the concept of peer-to-peer is there, it means there is no central authority that issues new money or keeps track of transactions. The money creation and transaction gets managed by the network itself.
The future of initial coin offering
During last few months, initial coin offerings have got acclaimed by the technology press and these have been considered as important. The technical community is showing lots of interest in icos but the future of this e-currency is not very clear. It is quite possible that initial coin offering could only remain popular among the niche that uses cryptocurrencies or there are still possibilities that cryptocurrencies become widely popular. With time, cryptocurrencies could also fade away from market. The fixed monetary base and reduced user base may result in devaluation of ico rating.