What is an ICO and how does it work?

The ICO has proven to be a revolutionary way to make money for many companies and projects. ICO can be said to be a mixture of traditional methods and advanced techniques. The first thing to consider here is that investors who invest in an ICO are 100% risk free due to the technology used.

So far, most ICO funds have been raised through Bitcoins (BTC) or Ether (ETH). When an ICO is implemented, the project prepares a Bitcoin or Ethereum address to receive funds and then displays it on the relevant website. The procedure is the same as opening a bank account and then showing it to people on a specific website so they can send money.

An initial coin offer (ICO) is an illegal way of raising public funds primarily through various cryptocurrencies (in some cases fiat currencies) and is operated by cryptocurrency organizations to obtain the capital funds required to carry out the project. In an ICO, a portion of a recently issued cryptocurrency is sold to investors in exchange for any legal tender or any other cryptocurrency. It can be called a token sale or a crowd sale, which involves receiving an investment amount from investors and providing them with some features related to the project to be started.

An IPO, an initial public offering, is a term associated with an ICO in which investors own shares in a company. While in an ICO, investors buy money that can add value as the company strengthens.

The first token sale, the ICO, was made by Mastercoin in July 2013. Ethereum raised money with the ICO in 2014. ICO has received a completely new definition in recent years. It was around in May 2017. 20 offers and Brave’s ICO web browser earned about $ 35 million in just 30 seconds. As of the end of August 2017, 89 ICO coins worth $ 1.1 billion had been sold since January 2017.

Investors send Bitcoin, Ethereum, or any other cryptocurrency to a given address, and in return receive new tokens that can be of great benefit to them if the project is hit.

  • ICOs are mainly conducted for cryptocurrency-based projects based on decentralized technology. Of course, such projects will only force investors who are very interested in the concept of cryptocurrency and are friendly with the technology used.
  • A document belonging to an investor actually remains in the form of a website, white paper or website mail. Some of these documents show the exact details of the project, while others show whether their features were literally forged to deceive those interested. Therefore, you must pass a quality check before relying on any white paper or electronic document.