What is an ICO?


An ICO is the cryptocurrency space’s rough equivalent to an IPO in the mainstream investment world. ICOs act as fundraisers of sorts; a company looking to create a new coin, app, or service launches an ICO. Next, interested investors buy into the offering, either with fiat currency or with preexisting digital tokens like ether. In exchange for their support, investors receive a new cryptocurrency token specific to the ICO.

The newcomer coin doesn’t exist at the time of the ICO. The company or individual behind the ICO uses investor funds to finish their project and bring it to market — and then, assuming all goes well, the new coin becomes available for public exchange.

In some cases, you must hold an existing token like bitcoin or ether in order to participate in an ICO. Some upcoming and recent standalone ICOs accept only bitcoin, while others will take any and all comers during their stated ICO period — the Ethereum blockchain currently hosts most standalone ICOs.

An Initial Coin Offering (ICO) is a sale of a new cryptocurrency or token created by a company looking to raise money




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