Cryptocurrency Q&A
Is ERC20 an ICO?
Is ERC20 an ICO?
MysticStorm
Mon Jul 22 2024
|
7 answers
1762
Excuse me, as a cryptocurrency and finance expert, I have a question regarding the terminology used in this industry. Specifically, I've come across the terms ERC20 and ICO quite frequently, but I'm still unclear about the relationship between them. Could you please elaborate on whether ERC20 is an ICO? I understand ERC20 refers to a technical standard for tokens issued on the Ethereum blockchain, but does it inherently imply an Initial Coin Offering (ICO) or are they separate concepts? Clarifying this distinction would be greatly appreciated.
7 answers
Chiara
Wed Jul 24 2024
This process is typically achieved through an Initial Coin Offering (ICO), a fundraising mechanism specific to the cryptocurrency world.
Was this helpful?
303
47
CryptoNinja
Wed Jul 24 2024
During an ICO, a project offers ERC20 tokens to investors, who in turn provide ether, the native currency of the Ethereum blockchain, as payment.
Was this helpful?
117
20
Martina
Wed Jul 24 2024
The ether exchanged serves as the funding for the project's development, operations, and other expenses.
Was this helpful?
391
49
DigitalDynastyQueen
Wed Jul 24 2024
ERC20 tokens are compliant with the ERC20 standard, a set of rules that ensure compatibility with Ethereum wallets and decentralized applications.
Was this helpful?
118
57
Elena
Wed Jul 24 2024
ERC20 tokens serve as a prevalent method for fundraising new cryptocurrency ventures.
Was this helpful?
145
37
Load 5 more related questions
