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Cryptocurrency,  Technology

What is a reverse ICO?

Until now we knew the world of the ICO (Initial Coin Offering) world which has been an easy and quick way to find financing for a project. It is true that there are many projects that without this funding format would never have seen light, since the achievement of funds by business angels or investors of any kind requires a lot of time, preparation, documentation… A series of steps that most of Start-ups are not prepared to give or have time to prepare it. In any case, the ICOs, being associated with very premature phases of projects, do not have a very good reputation, since many of them end up failing and some others achieve an interesting growth.

Now the “reverse ICO” concept begins to be more familiar. And we have an extremely interesting term. There is a broad spectrum of existing companies that are interested in the blockchain universe. The blockchain technology complements a part of the business or even makes them rethink it. It is like a second opportunity for many businesses.

This would be the case of the most interesting reverse ICO’s. Companies that already have products and customers that want to incorporate decentralization or cryptocurrencies in their business. Imagine that a gas distribution company wants to incorporate the payment in cryptocurrencies for the most loyal consumers. Or imagine a social network app that has many customers but does not finish taking off. This company could consider changing its model to a blockchain system in which the published content is not centralized or regulated and which allows remunerating the most active users of the community. It would be a way to give back to your business. In addition, surely there are many small investors who would see in this new rethinking a quick way to have a “crypto product” already in use, which would allow a possible quick adpciĆ³n if a good marketing strategy is established.

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