What is an ICO and how does it work?

An ICO is a new fundraising model: a team develops a project, presents a business plan and then people decide to invest, hedging their risk, on its potential success. It makes sense that investors expect each single ether or bitcoin from the fundraising to be used towards the project success.

Why should a company conduct an ICO?

Whenever a project wants to launch a new coin or dApp, they can conduct an ICO to attract investors into their ecosystem. The most alluring part of ICOs is the lack of red tape and formality. More often than not, a company simply has to submit a whitepaper to qualify for an ICO.

How can online services help a company launch an ICO?

Online services can facilitate the generation of cryptocurrency tokens, making it exceptionally easy for a company to consider launching an ICO. ICO managers generate tokens according to the terms of the ICO, receive them, and then distribute the tokens by transferring the coins to individual investors.