For those who are aware of the cryptocurrency trading industry, they must have come across this term ‘ICO’ in the recent times. Ever wondered, “what is ICO?”. ICO is an abbreviated term for “Initial Coin Offering”. For understanding ICO, you need to have a general idea about IPO (Initial Public Offerings). In a typical IPO scenario, a company usually extends out its shares for the purpose of raising funds.
However, when it comes to ICO (Initial Coin Offerings), as the name implies, a particular company promotes crowdfunding through some of the specific digital assets known as “tokens”. These digital assets or digital contracts based on the Blockchain technology come with a certain monetary value. This value is expected to rise over a period of time, just like the cryptocurrency Bitcoin. In most of the cases, these smart or digital contracts in an ICO get funded by some of the famous cryptocurrencies like Bitcoin, Ethereum, and others.
ICO (Initial Coin Offering) Introduction
ICO is a special term in context with cryptocurrency trading that has been gaining impetus in the recent times. ICO has been defined as the process wherein the selling of certain cryptocurrency tokens or assets takes place before the traders enter the different cryptocurrency trading platforms or channels.
ICO is recognized to be an organized means of raising crowdfunds by different companies for setting up a new digital or cryptocurrency project. The initial offer of the ICO gets utilized by the startup companies. This is usually done for bypassing the highly structured and rigorous process of ample capital collection that might require the presence of some large holders of the necessary capital.
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