What is a Reverse ICO and What Are Examples?

A reverse ICO can mean a company issues tokens to represent existing assets or services. For more details, see this article.

Understanding Reverse ICO

Reverse ICO is a process where existing companies, especially traditional companies outside the crypto world, decide to launch crypto tokens or utilize blockchain technology in their business. 

In contrast to ICO ( Initial Coin Offering ) where blockchain startups obtain funds through token sales to build new projects, in reverse ICO, established companies use blockchain technology to expand their business models or introduce new innovations.

A reverse ICO could mean a company issues tokens to represent existing assets or services, or leverages blockchain technology to increase the efficiency or transparency of their operations.

Example of Reverse ICO

Ripple (XRP)

Ripple Labs, a payment technology company founded in 2012, conducted a reverse ICO by launching the XRP crypto token. 

Initially, Ripple focused on developing an interbank payment protocol using blockchain technology. 

However, by launching XRP, Ripple wants to increase cross-border liquidity and facilitate faster and cheaper financial transactions. 

XRP is used as a bridge currency within the Ripple network, enabling instant transfer of value between multiple fiat and crypto currencies.

Also Read: Understanding the Presence of Initial Dex Offering (IDO) as an Alternative to ICO

Cocoa (Klaytn)

Kakao, the South Korean technology company best known for its instant messaging application, KakaoTalk, also conducted a reverse ICO by launching a blockchain platform called Klaytn. 

Kakao leverages blockchain technology to develop new services and improve its business ecosystem. 

Klaytn aims to provide user-friendly blockchain infrastructure for consumer and business applications, with a focus on issues of scalability, security and reliability.

IBM (World Wire)

IBM, a well-established global technology company, is also taking steps towards blockchain by launching the World Wire platform. 

The platform leverages blockchain technology to facilitate faster and more cost-effective cross-border payments. 

By launching this platform, IBM aims to expand the range of cross-border payment services offered to its clients, as well as increase efficiency and transparency in the global payments system.

Reverse ICOs provide traditional companies with the opportunity to exploit the potential of blockchain technology in their established businesses. 

By launching a token or blockchain platform, companies can access new markets, increase operational efficiency, and introduce industry-changing innovations. 

This shows that blockchain technology is not only relevant for crypto startups, but also has a significant impact in broad business transformation.

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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds intowallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.