The business news website singles out reverse ICOs as 2018's crypto trend, naming Cool Cousin and Kik as examples of successful campaigns.
In a recent publication, Business Insider names Cool Cousin as one of 2018’s successful reverse ICO (Initial Coin Offering) launches. “A trend worth watching in 2018 is that of reverse ICOs - the process in which non-blockchain companies move from centralized structures to tokenized business models,” writes reporter Ben Dickson.
The pivotal advantage of a reverse ICO is one that Cool Cousin understood, nailed, and “got it right,” according to Business Insider. Recently, the app launched its own cryptocurrency, the CUZ token. By transferring to a blockchain-powered platform, Cool Cousin will effectively transform into a safe community that operates on a basis of complete transparency–meaning that the problem of content manipulation and other malicious intents will be eliminated.
Business Insider specifically notes that transparency will serve as a key advantage for Cool Cousin’s platform in the endeavor to change the way travelers source local information. Dickson writes that the implementation of the CUZ token will function as a genius reward mechanism for Cousins, whose contribution to the quality and nature of the app is currently voluntary.
The implementation of ICOs has blossomed into a popular phenomenon for funding businesses; As a brief overview, an ICO is a fundraising method whereby an organization sells its unique cryptocurrency in exchange for bitcoin or ether.
Reverse ICOs enable companies to shift from a centralized structure to a decentralized model in order to uphold and enhance their status in a competitive market. Perhaps one of the biggest advantages of launching a reverse ICO centers around the fact that if an organization already carries a well-established user base. In this event, diving into a tokenized economy with an abundance of users at hand is a precursor for a successful fundraising mechanism, as users are likelier to participate in the ICO. Another key advantage of running a reverse ICO is that “the company behind them already has a working business model,” stated Business Insider. This gives companies like Cool Cousin an edge over StartUps that are still in product-development phase, and have yet to break through the market.
The benefits of launching a reverse ICO are clear. Businesses like the renowned messaging app Kik have raised almost $100 million in token sales last year, and Telegram (a prominent social media app), has a sea of 200 million users that will likely engage in an ICO.