An initial coin offering (ICO) is a concept
that has been getting increased airplay in recent times, with
estimates that more than $1 billion has been raised globally via
ICOs.
With some key decisions being made by regulators globally
(including the US and China) – and with guidance from ASIC
released last week – we thought it timely to provide an
overview on the concept.
So what is an ICO?
ICOs generally operate as a blockchain-based funding process,
allowing investors to use cryptocurrency (such as bitcoin or ether)
to purchase coins or tokens relating to a specific product or
project via the internet for a set period of time.
The relevant coins or tokens are typically linked to the
specific business model of the company running the ICO, providing
the holder of the coin or token the right to use the company's
product or participate in the relevant project as a customer at a
future date.
