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What is an ICO (Initial Coin Offering)?

What Is an ICO? At their peak in 2017, initial coin offerings (ICOs) had overtaken venture capital as the main fundraising method for blockchain startups. ICO stands for “initial coin offering,” and refers to a formerly popular method of fundraising capital for early-stage cryptocurrency projects.

How does a cryptocurrency ICO work?

Those who opt to participate and become investors will exchange money for the new project’s coin or token. Cryptocurrency creators collect money from some investors by making the coin available pre-ICO for sale. During this period, they typically issue coins at a discounted value, often in order to get capital to continue building out the currency.

What is an ICO and how does it work?

An easy way to understand an ICO is to see it as a crowdfunding campaign. Investors send funds to projects they like and in return receive new or existing cryptocurrencies. Those new coins play a role of shares and can be traded on cryptocurrency exchanges if they are successful; however, there is no promise that investors will get anything back.

What is an IPO & ICO?

An IPO is an Initial Public Offering — this is a term used when a company first releases their stock onto the stock market. Before that, the company’s stock was private and its shares were not available to the public. Hence, Initial Public Offering. It's important to understand the differences between IPO and what is an ICO.

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