ico

ICo

its one of the ways to get support for a new cryptocurrency project

Each cryptocurrency project u can say its got 4 main attributes that are desirable to have. u got the project itself, all its technology and conceptual ecosystem. u got the team that develops and administers to it. u got the community interest and adoption. and then u got the funding for the project.

The ICO raises funds on the project by issuing cryptocurrency coins to investors who have contributed to the funds. it also is intended to have a positiive effect on community interest and adoption.

As i understand it, nowadays it is difficult to start a project from simply proof of work mining like what happened with bitcoin and early projects. its because network security is low in the early stages and cryptocurrency will never go back to the old days of security by obscurity.

So alternatively to ICO there is also the contentious hard fork method of starting a new project. Its got some issues with it.. mainly the part about being contentious.

Then u got airdrops. airdrops are nice cause it boosts alot of community interest and adoption and it avoids much of investor satisfaction issues that can arise from the ICO.

ICO method is very powerful though and there is alot of potential for success. Just make sure to be responsible when investing in em. make sure you know what you are getting into and dont expose yourself to risk that you cannot afford.