ico

In the last few years, ICOs have been an increasingly popular way for startups to raise capital.

An ICO is a type of crowdfunding that uses cryptocurrency (usually Bitcoin or Ethereum) to raise money. It’s similar to an Initial Public Offering (IPO), but has some distinct differences.

The first is that, instead of shares in the company being sold, coins or tokens are sold. This means that the tokens don’t represent shares in the company and they don’t confer any ownership rights either. They are simply a representation of value (similar to a gift card). The second difference is that ICOs generally sell out very quickly and yield high returns on investment for those who buy early on. The process starts with a company announcing their intention to launch an ICO and then creating a whitepaper which lays out all their plans for the project, along with how much money they need to get it off the ground. Investors will then visit the company’s website to find out how they can participate. Nowadays, companies will often distribute coins or tokens in exchange for Bitcoin or Ether on an ICO platform such as Bancor.