What is an Initial Coin Offering?
ICO (abbreviation of Initial Coin Offering) is an offer to
someone to invest in some units of a new cryptocurrency or
crypto-token in exchange against already established
cryptocurrencies such as Bitcoin or Ethereum. ICOs have become an
increasingly popular method of fundraising for start-ups and other
companies with the intention to fund innovative projects based on
the blockchain technology.
In other words, when a start-up firm wants to raise funds
through an ICO, it usually creates a plan stating out the
project's goals, requirements, how much funds to raise, how
much of the virtual tokens will be kept by the founders, what type
of money are accepted and for how long the ICO campaign will run
for. Just like an Initial Public Offering (IPO) where an
investor buys shares to a company in exchange for money, ICO
investors buy some of the distributed crypto-tokens in exchange for
already established virtual currencies such as
