What is an ICO and how does it work?

ICO has proven to be a revolutionary way for many companies and projects to raise money. ICO can be said as a mixture of conventional methods and advanced methods. The main thing to consider is that investors investing in an ICO will not be completely risky because of the technology used.

To date, most ICO funds have been raised through Bitcoins (BTC) or Ether (ETH). As part of the ICO, the project creates a Bitcoin or Ethereum address to receive funding and then displays it on the relevant website. The procedure is the same as opening a bank account and then showing it on a certain website to people so they can send money.

The initial coin offering (ICO) is essentially an illegal way to raise crowdfunding through various cryptocurrencies (in some cases fiat currencies) and is managed by cryptocurrency organizations to raise the capital needed to carry out the project. An ICO sells a portion of a recently issued cryptocurrency to investors in exchange for any legal tender or any other cryptocurrency. This can be said to be a symbolic sale or a crowd sale where investors take the amount of investment and give them several functions related to the project being started.

An IPO, or initial public offering, is a process somehow associated with an ICO where investors receive shares in the company. As an ICO, investors buy company coins, the value of which can increase if the business strengthens.

The first symbolic sale, the ICO, was made by Mastercoin in 2013. July. Ethereum raised money through the ICO in 2014. 2017 May. 20 offers and the latest web browser, Brave’s ICO, earned around $ 35 million in just 30 seconds. Until 2017 End of August 2017 Month of January. Sales of 89 ICO coins worth 1.1 billion were sold. USD.

Investors send Bitcoin, Ethereum or any other cryptocurrency to the address provided and receive new chips in return, which can be very useful to them if the project is hit.

  • ICO is mainly run for cryptocurrency-based projects that rely on a decentralized technique. Thus, naturally, such projects would force only those investors who are very interested in the cryptocurrency concept and are friendly to the technologies used.
  • The document belonging to the investor actually remains as a website, information paper or message. Some of these documents show accurate information about the project, or some others literally falsify its features to mislead those interested. So, before relying on any white paper or email. In the document, better check the quality.

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