A crowdfunding campaign to fund her advancement is being launched by Sophia, a humanoid robot. Behind the scenes, Hanson Robotics are funding developing AI, or artificial intelligence. This is referred to as ICO, or initial coin offering. Sophia is featured in the company’s video promoting the marketplace.
The definition of an ICO is a token purchased by an investor to raise capital for a new business. This has become the new entrepreneurial tool. All entrepreneurs are eventually challenged for capital. The ICO is an alternative to grow a new venture, but there are risks. The main benefit of the futuristic ICO’s is to appeal to a wider variety of investors.
Coin Schedule has stated the number of ICO’s has exploded. A total of $96.3 million was raised in 2016 with 46 ICO’s. Of this, $16.4 million was secured by Waves, a blockchain company. By November of 2017, there were 228 ICO’s, and $3.56 billion was raised in capital. This includes the software company Filecoin who brought $206 million to the company. For more details, please visit Your text to link….
Despite their growth potential, ICO’s have a lot of risks. Many startups are in the earliest stages, and it would be numerous years before an investor would see any return. There is also concern another economic bubble will burst due to cryptocurrency and ICO’s. Some companies have seen staggering growth, bitcoin increased from $1,000 to almost $10,000. The problem is investors will lose if the ICO’s do not continue to make a profit.
Cryptocurrency is also mostly unregulated and decentralized. This means the tokens can be attacked and stolen by hackers. According to the SEC, or the Securities and Exchange Commission, hackers cost DAO one third of their assets. The SEO is trying to educate investors and monitor ICO’s.
ICO’s may be the way to gather funding without giving the investors the control, or needing to give away equity. The entrepreneurs must conduct a thorough investigation regarding ICO’s before attempting to raise any capital. This area is becoming more complicated as time passes.