What is ICO?
What is ICO? An ICO definition — a type of capital-raising activity in the cryptocurrency and blockchain environment. An initial coin offering may offer a new cryptocurrency to attract investors. According to the ICO meaning, new tokens (cryptocurrency units) are frequently acquired for ICOs utilizing one-time or expedited creation. Even those with a tight budget for a startup can put money into worthwhile causes. The coin terms are — tokens must be sold for a cryptocurrency whose liquidity has already been established as a core need of the procedure.
How does it work
What is ICO in cryptocurrency, and how it works? To obtain money, a startup business releases a "white paper" that details every facet of the idea. These coins will be exchanged on the market if the project is successful and its inventor completes what he started.
Advantages and disadvantages
Take into account the advantages:
- the go-to option for startups (suited even for ideas at the conception stage);
- cheap cost of process (10 to 50,000 dollars);
- high organization speed;
- the ability to divide tokens; low entrance hurdle for investors.
There are primary drawbacks to this activity. For instance, investor company rights are not protected, and there are no dividends.
However, the growth of capital is what motivates financial investments. It offers the possibility to earn hundreds and even thousands of percent.