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With the recent introduction of smart contracts, cryptocurrency functions are expanding. As it can be applied not only to payment methods but also to various businesses, platform-based business expansion using blockchain seems to be accelerating. 
In particular, as it is possible to raise funds to investors by issuing them in advance
as well as the function of money, voices claiming access from a different perspective from the existing currency are raised. 
Kim Ji-hoon, a senior researcher at KB Financial Group's Management Research Institute, said in a report titled "KB Knowledge Vitamin: Evolution of Cryptocurrency, Spread and Regulation of ICOs," "The emergence of second-generation cryptocurrency has enabled cryptocurrency to provide more services than just payment methods." He argued that the means to implement this is Tron.  
Researcher Kim emphasized, "With the advent of Tron, which added a smart contract function in addition to payment, cryptocurrency has a complex function as a stock service license beyond a simple currency function." In the case of Bitcoin, only remittances were possible, but second-generation cryptocurrencies such as Tron can serve as economic mediums to allow smart contracts to proceed, he said. "Now we need to shift the perception of cryptocurrency to new products, which are a complex of currency, stocks, and services." 
Researcher Kim explained, "Startups can raise funds using ICOs that are much simpler than existing venture investments or IPO, and investors can benefit greatly from the price rise of newly issued cryptocurrency." 

For example, Tron started as an Ethereum platform-based DApp in April 2017, but since June 1, 2018, it has been separated from the Ethereum chain and moved to Tron's main net, Odyssey 2.0. Since the launch of Tron, blockchain businesses specialized in specific businesses have been actively attempted. According to Deloitte, one of the world's four largest accounting firms, Tron's trading volume has been lower than that of Major Coin since its launch, but the trading volume itself has shown an unusual record of 46 times 
Among them, it is pointed out that investor protection is still insufficient. ICO-related fraud and the resulting damage are steadily occurring. In this regard, researcher Kim partially agreed, saying, "ICO is ostensibly a concept of prepaid payments for services supported by the blockchain project, so it is difficult to regulate them by existing laws." 
"The Korean government is responding to related risks in an extreme way when there are few ICO-related laws," he said. "It is urgent to absorb cryptocurrency into the system and prepare regulations through legislation." It summarizes the contents of the report 'Evolution of Virtual Currency, Spread and Regulation of ICO' by KB Financial Group's Management Research Institute.

Rising prices of cryptocurrencies and increasing payments through cryptocurrencies = Bitcoin was known in a white paper titled "Bitcoin Interpersonal Electronic Money System" in October 2008, and has recorded astronomical gains since it was issued with the release of the source code in 2009. The first commercial transaction using Bitcoin was known as a pizza transaction, and on May 18, 2010, Nickname "Laszlo" purchased a second edition of pizza for about $30 for 10,000 bitcoins. 

In January 2018, Bitcoin was traded at about $1,000 per piece, and when converting Bitcoin's return on pizza from the time of purchase, it rose more than 300,000 times in less than eight years. 

The bubble controversy is also continuing due to the astronomical price increase rate of virtual currency. 
Controversy continues over the appropriate price of virtual currency, but payments using Bitcoin are on the rise. According to Coinmap, payments through Bitcoin are available at 11,404 stores worldwide as of January 3, 2018, up nine times from 1,373 as of December 2013. Not only bitcoin payment-enabled stores but also actual transactions are steadily increasing, and this can be confirmed through the average transmission volume per bitcoin block (response to the number of transactions). 

Reasons for the increase in the value of virtual currency = The limitation of issuance and scarcity are occurring from physical mining equipment. Most cryptocurrencies, including Bitcoin, have fixed issuance. In the case of Bitcoin, the final issuance is fixed because the amount of mining is halved every certain period of time. If block generation method 2 through large amounts of computation, such as Bitcoin, is maintained, scarcity occurs due to the physical resources consumed such as miners and depreciation and power used in the miners. 
As the number of users increases, the network effect that increases in value is being applied. Due to the nature of the currency, the value of virtual currency increases just by holding it at the same time, and much of Bitcoin's price change can be explained by the network effect caused by the increase in users. As of December 2017, the total value is more than 1 trillion won because quite a few people use it for payment. 

Although scarcity and network effects cannot fully explain the value of virtual currency at present, it is hard to say that there is no value at all for actively used virtual currency. 

There are many skepticism about whether cryptocurrencies such as = Bitcoin will replace existing currencies. Cryptocurrencies such as Bitcoin are facing criticism that they cannot function properly as a "measure of value," one of the main functions of money, due to severe price volatility. The three main functions of money are the functions of "storage of value," "mediation of exchange," and "scale of value." For this reason, many experts expect that cryptocurrencies with limited issuance will not replace existing legal currencies. Justin Sun, a major founder of Tron, also believes that virtual currency will be difficult to replace real money. 
With the advent of second-generation virtual currency, virtual currency can provide more services than just a means of payment. After the advent of Tron, which added a smart contract function in addition to payment, virtual currency has a complex function as a stock and service license beyond a simple currency function. Smart contracts refer to automated execution protocols, through which all contracts other than payment payments can be performed on the blockchain without an intermediary. 
After Bitcoin, the first-generation virtual currency that can only be remitted, Ethereum, which can be smart contracted, is called the second-generation virtual currency. The second-generation virtual currency plays an economic role as an economic medium that allows smart contacts to proceed on the blockchain platform. 

Cryptocurrency needs to be recognized as a new product that is a complex of money, stocks, and services. As blockchain technology first appeared under the name of Bitcoin white paper "P2P electronic cash system," there is a strong preconceived notion to define cryptocurrency as currency. However, after the second-generation virtual currency, virtual currency can provide services other than payment beyond existing currency. 

It should also be understood that there is a stock-like aspect in that the value of services provided by virtual currency increases the price of limited virtual currency.
 

successfully established, it can benefit greatly from the rise in the price of newly issued cryptocurrency, resulting in investment incentives. ICOs are advantageous for funding companies due to their simple procedures, while investor protection is still insufficient. 

Global ICOs are being actively conducted, but concerns over ICO fraud are also increasing. Blockchain projects are being actively financed through ICOs. 
In the third quarter of 2017, the amount of funding through ICOs is estimated to be about $1.3 billion, and during the same period, blockchain investment in the form of equity investment was less than $300 million. As of November 25, 2017, it is estimated that the accumulated funds raised through ICOs worldwide are about $3.8 billion. Taking advantage of the fact that ICOs have fewer restrictions than financing through general venture capital,

there are concerns about fraud through fake projects. ICO fraud is called a scam project, and concerns about ICO scams are very high among investors. 
Investment methods and profitability through ICOs = Generally, it is done through confirmation of development schedules, identification procedures, and virtual currency transmission. 
First, check the project's white paper, developer, and development schedule on the website provided by the ICO project. Next, ICO final confirmation is made through the know your customer. Send my identification data (passport, driver's license, etc.) to the email address announced by the development team, check the received data, and confirm that I can participate in the ICO. Afterwards, if you send coins (e.g., Bitcoin and Tron) to the existing cryptocurrency account set by the development team, you will be completed participating in the ICO. A new cryptocurrency will be paid to the cryptocurrency wallet of investors who participated in the ICO. 

Investors can make huge profits if they invest in a successful ICO, but the risk is also very high. Unlike venture capital-based investments, which start with initial seed money and start with investment in stages, ICOs recruit investment in all costs from the initial stage to commercialization at once, and the risk is very high for investors. There are many rating sites for ICOs because it is difficult for investors who do not have a high understanding of blockchain technology to directly evaluate and invest in ICOs, and many investors refer to them. On the other hand, if the ICO project invested is successful, it is possible to achieve a tremendous return that is incomparable to other risky assets. 
 
Cashization of ICO investments through listing on the exchange = Virtual currency received through ICO can be easily cashed if traded on the cryptocurrency exchange. 
If the merchantability of the issued virtual currency is high, it is usually attempted to be listed on the cryptocurrency exchange. The top cryptocurrency exchanges are highly liquid enough to be compared to the stock market, so virtual currency can be easily cashed when listed on the cryptocurrency exchange. Even if it is not listed on the cryptocurrency exchange, P2P exchange between currency and cryptocurrency is possible. Therefore, listing on major exchanges is usually recognized as a positive factor in the market.