Topic: What is an ICO..? (Read 148 times)

Enter the section for beginners. There's a lot of information about what it is and a lot of useful information in order to understand all the terms.

Initial Coin Offering(ICO) like Initial Public Offering(IPO) is a fundraising or crowdfunding means for the startup of a new business venture. ICO projects is mainly on cryptocurrency development like production of new coin or maybe cryptocurrency platform.

In an ICO venture, a percentage of the cryptocurrency called token is preallocated to the investors of the project in exchange for legal tender or other cryptocurrencies like bitcoin or ethereum.

Unlike IPOs, ICOs do not follow any regulatory compliance and any intermediary financial organizations thus it is quite risky for investors. So someday if you want to invest on ICO projects just beware to scam ICOs... Goodluck

ICO or Initial coin offering this is the selling of token in a very low price there are many stages every stages the value of token increases so that this is the good part to invest in ICO because you can accumulate more and also the best in this if the ICO became successfull the price from the ICO will be doubled or higher and wait for it to be available on the exchanger.

ICO stands for Initial Coin Offering, it's a process where by certain crypto developers give our their coin to make it known at cheaper rates.

Funny thing is that I was re-watching wolf of wall street the other day.
I never knew much about IPOs, but I knew what ICOs are.
Was funny to find out the IPOs are basically ICOs from such a movie.

An ICO or initial coin offering is the development of a new digital coin that is being showcased to the investors. It is also labeled as crowd funding by companies initially in the form of token to be exchange for a bitcoin or eth. And when it become success, the ICO becomes utility token or coins and if the value continues to increased, these coins can be use in some trading platform or it can become a functional unit which can be used also in exchange for some service or goods in countries where it is being accepted. It is a great opportunity to earn big amount during an ICO's.

An ICO, is a fundraising mechanism where new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It's similar to an ( IPO ) where investors purchase shares of a company. Since developers bring in a new currency system, they give out tokens which become new cryptocurrencies in exchange of the older more established coins such as Bitcoin and Ethereum. It's the reason why people are drawn to these ICOs because they are good investment opportunities.

I understand simple that ICO is a period time that developers want people invest in their project.
All money collected from ICO will be distributed to another suppose. Then they get profit and divide for investors

An ICO typically involves selling a new digital cryptocurrency or a token to raise funds for a project by the company or a group of people pursuing that project.

ICO typically is has the following inclusions for explaining the concept to the investors;

A website containing all the information about the project like project purpose, founders and their background, token structure in various fund raising stages of ICO like the PRE-ICO stage and ICO stage, Discounts offered to early investors

A video explaining the concept and how it will bring benefits to the community accessing this platform or any disruption in a industry by using blockchain or Artificial intelligence or any other latest technology

A whitepaper explaining the business model in detail (generally containing 20-25 pages)

Once the concept is designed and is ready for investors to view, this is then marketed on a rigourous basis using digital marketing platforms

In the world of cryptocurrency or cryptocurrency, an instrument known as ICO (Initial Coin Offering) is used to finance the development of new protocols. This expression, literally translated into Spanish, means Initial Offer of Currency.

There are two main mining methods, Proof of Work (PoW) and Proof of Stake (PoS), which are relevant for us to understand how an ICO works. On the one hand, the Proof of Work mining model is used in the Bitcoin, Litecoin or Ethereum protocol to mention only a few examples.

The Proof of Stake is a model in which the owners of cryptocurrencies are progressively rewarded - in a lottery among the cryptocurrency holders themselves - with new tokens of the same type. In this model, holders of more units of account or currencies are more likely to increase their holdings with new cryptocurrencies.

The Proof of Stake model, unlike the Proof of Work model, allows a distribution of cryptocurrencies or tokens based exclusively on the priorities of the protocol developers, a circumstance that has allowed the creation of ICOs with a fraudulent or dishonest tone. The advantage of the PoS system is that it does not consume energy to ensure the system unlike the Work Test model, but unlike the PoW the distribution of the coins can be unbalanced.

Another point not fully touched upon by the above users is it is in a lot of ways more sketchy than an IPO.

IPOs are a regulated form of selling stock in a company.
ICOs are unregulated and use cryptocurrency instead. This means that there is no real force preventing ICOs from just running away after a token sale, and all you have is trust.

ICOs usually skirt the law or are outright illegal in some cases. ICOs have the potential for pump and dumps.

The cryptocurrency community has a lot of unbridled enthusiasm sometimes. Be wary.

New knowledge that I have gain. Thank you!

Was wondering this myself, thanks for the easy explanation.

AN ICO is Initial Coin Offering in which someone offers investors some units sf cryptocurrency or crypto-token in exchange for btc or eth. It was first used by ripple and they created nearly 100 billion XRP tokens and the company sold these tokens for development of ripple. By investing in ICO one can easily fund the development of a crypto by releasing its token integrated in its project.

It's the equivalent of an IPO - https://www.investopedia.com/terms/i/ipo.asp, basically when a stock goes to the market for the first time, they sell a certain amount of them at a fixed price.

That's basically what an ICO does aswell, but with coins, or tokens.

A more detailed explanation can be found here, https://blockgeeks.com/guides/initial-coin-offering/

It could potentially make you a lot of money, if the coin  blows up, ( like ethereum did.)

What is an ICO (Initial Coin Offering) and why invest in one?