{"headers":{"Content-Type":"application\/x-www-form-urlencoded"},"body":"source_lang=EN&target_lang=NL&tag_handling=xml&split_sentences=1&preserve_formatting=1&text=What+is+a+reverse+ICO%3F&text=While+ICOs+have+proven+a+popular+avenue+for+crowdfunding%2C+numerous+businesses+have+turned+to+reverse+ICOs+-+here%2C+we+unpack+this+process+and+explain+its+appeal.&text=As+we%27ve+covered+previously%2C%C2%A0%3Ca+href%3D%22https%3A%2F%2Fdev.coininsider.com%2Fwhat-is-an-initial-coin-offering%2F%22%3EInitial+Coin+Offerings%3C%2Fa%3E%2C+commonly+abbreviated+to+ICOs%2C+are+a+fundraising+method+by+means+of+crowdfunding.+In+cryptocurrency+communities%2C+a+distributed+web+of+investors+-+based+in+varying+locations+around+the+world+-+are+able+to+invest+and+purchase+tokenized+assets+in+new+blockchain+projects+through+either+fiat+currency%2C+Bitcoin%2C+or+Ether.%0A%0AICOs+are+similar+to+the+concept+of+%3Ca+href%3D%22https%3A%2F%2Fdev.coininsider.com%2Fico-vs-ipo-major-differences%2F%22%3EInitial+Public+Offerings%3C%2Fa%3E+%28IPOs%29+in+the+stock+exchange+which+see+the+initial+public+sale+whereby+investors+can+purchase+shares+of+a+company%3B+ICOs+see+investors+purchase+the+project%E2%80%99s+tokens+%28which+act+like+shares%29+and+pay+in+a+cryptocurrency%2C+such+as+Bitcoin.%0A%0AICOs+are+a+means+for+blockchain+startups%2C+and+other+projects%2C+to+quickly+amass+funding+and+%28potentially%29+break+into+a+worldwide+market+with+a+particular+idea%2C+product%2C+or+venture.%0A%3Ch3%3ESo+what%27s+a+%27reverse%27+ICO%3F%3C%2Fh3%3E%0A%27Reverse+ICOs%27%2C+as+they+have+come+to+be+called%2C+use+the+process+of+an+initial+coin+offering+to+tokenize+or+decentralize+their+business%2C+accrue+additional+investment%2C+or+launch+a+blockchain-based+arm+of+their+traditional+business.%0A%0AIn+simple+terms%2C+while+a+%27traditional%27+ICO+aims+to+rapidly+acquire+funding+to+start+or+launch+a+blockchain+business+or+project%2C+a+%27reverse%27+ICO+sees+an+established+firm+raise+funds+to+decentralize+or+open+their+pool+of+investors.%0A%3Ch3%3EWhat+are+the+benefits+of+reverse+ICOs%3F%3C%2Fh3%3E%0AGiven+that+many+large-scale+firms+either+have+a+track+record%2C+are+regulated+by+regional+authorities%2C+or+have+already+conducted+an+Initial+Public+Offering+%28IPO%29%2C+reverse+ICOs+are+thought+to+be+more+easily+valued+and+can+function+with+greater+legal+and+fiscal+transparency+and+trustworthiness.%0A%0AWhile+small+and+medium+businesses+can+attract+venture+capital+and+funding+rounds%2C+large-scale+firms+have+largely+had+to+turn+to+an+IPO+to+attract+mass+funding+from+a+variety+of+investors.+While+this+process+is+beneficial+and+can+be+thought+to+add+prestige+to+certain+companies%2C+the+process+involved+is+highly+regulated+and+usually+only+open+to+accredited+investors.%0A%0AThrough+a+reverse+ICO%2C+companies+are+able+to+distribute+tokenized+assets+or+utilities+to+raise+funds+or+functionality+to+a+variety+of+worldwide+investors+without+-+for+the+most+part+-+needing+to+follow+a+laborious+legal+process+or+comply+with+extraneous+regulation.%0A%0A%5Bnewsletter_signup+id%3D%221%22+align%3D%22full%22%5D%0A%3Ch3%3EWhat+are+reverse+ICOs+for%3F%3C%2Fh3%3E%0AIn+some+cases%2C+established+firms+have+conducted+a+%27reverse+ICO%27+to+establish+their+own+economies+within+their+product.+A+noteworthy+example+is+messaging+app+Kik%2C+which+successfully+performed+an+ICO+and+launched+its+own+cryptocurrency+-+%3Ca+href%3D%22https%3A%2F%2Fdev.coininsider.com%2Fcoin%2Fkin-price%22%3EKin%3C%2Fa%3E+-+for+use+within+its+app+to+facilitate+payments+and+purchases.%0A%0AIn+other+cases%2C+reverse+ICOs+have+enabled+companies+to+distribute+and+decentralize+their+operation+or+ownership+over+a+blockchain%2C+without+the+need+to+proceed+through+the+normal+processes+involved+when+conducting+an+IPO.%0A%0AMany+cryptocurrency+exchanges+-+in+a+bid+to+decentralize+their+operations+-+have+turned+to+an+ICO+in+order+to+create+their+own+cryptocurrency+asset%2C+perform+their+operations+over+a+blockchain%2C+or+attract+new+investment.%0A%0AWhile+it+remains+to+be+seen+in+practice%2C+it+is+thought+that+many+companies+in+future+may+show+interest+in+performing+reverse+ICOs+with+the+view+of+launching+new+products+or+attracting+crowdfunded+investment.","timeout":15}