Five Things To Know About ICOs

Initial coin offerings or similar types of sales of virtual-based coins and tokens, are quickly becoming an important fundraising tool for many early-stage companies. Last month, our QuickLaunch University webinar series focused on initial coin offerings and recent developments for startups. Here are five key takeaways:

1. While an ICO raises funds, the coins are not typical currency. Instead, the coins or tokens purchased in an initial coin offering can be used to transfer value within the new coin's ecosystem or to other cryptocurrencies' ecosystems, and so may represent other rights or functions as well. It may give the holder a right to purchase the startup's products or services, for example.