What is ICO ?

[hyunee]

An ICO is an unregulated means of crowdfunding via cryptocurrency. It has a token sales with refers to method of selling participation in an economy. This is where investors invest their money. As years go by ICO became popular and gain lots of investors.

[1715413227]

1715413227

[1715413227]

1715413227

[1715413227]

1715413227

[1715413227]

1715413227

[andreykh]

Basically, ICO looks like kind of IPO but with cryptocurrencies (tokens) and is a way that blockchain startups usually follow to get money.

[Getmon]

Help me to understand what is ICO ..?

Mr. Google is every ready to explain to you ICO in great details. You just have to type and click some buttons and you are there. But if you are tired and too lazy to do that, ICO stands for Initial Coin Offering. This is a way for a certain project to generate funds for the fulfillment of their projects. In an ICO, investors are needed as they are the ones who will buy the project's tokens. I'm done. 

The rest will be discussed to you by Mr. Google. 

[ico_reviews]

ICO stands for Initial Coin Offering. You can look at ICOs as an alternative form of crowdfunding to the release of a new cryptocurrency.

ICO is one of the most efficient and easiest ways for an individual or company to fund their projects and, at the same time, have other individuals and companies investing in them. Usually, before the new cryptocurrency emerges, the individual or company will need to raise money for all the technical development that is needed. So, they usually sell tokens in exchange for more established cryptocurrencies like Ether (ETH) or Bitcoin (BTC). The ICO period is usually never inferior to one week.

There are different types of ICOs. You can either have a specific limit of time or goal for the project funding. An example of an ICO may include having every token having a pre-designated price which will never change during the ICO period. In this case, the token supply is said to be static. However, you can also have a static token supply but include a dynamic funding goal. for example. In this case, the token distribution is made according to the funds received. So, if your project gets more funds, the token price will increase.

One of the best examples of a successful ICO project is the one regarding the Etherum, which has Ethers as their coin tokens. Back in 2014, only the Etherum project was able to raise $18 million in Bitcoins or $0.40 per Ether during their ICO. While the project only went live in 2015, by 2016 the Ether value had a huge increase in price and it went as high as $14, with a market capitalization of more than $1 billion.

Even though many people tend to compare an ICO with an IPO (Initial Public Offering), the truth is that they have a lot of differences. Unlike an IPO, an ICO doesn’t grant you any kind of ownership of the company or individual who is trying to develop their own cryptocurrency. Plus, one of the main disadvantages, especially when compared with an IPO, is the lack of regulation.

ICO regulation is needed

Throughout the latest years, you have numerous examples of successful ICOs. However, you shouldn’t trust every ICO you see or you get in touch with. While some end up with losses like it happened with cryptocurrencies such as Omni, for example, others can be used as a scam. After all, you just need to build a beautiful website, list some amazing sales talk, numerous promises that this is the nest big cryptocurrency, and you may have a hand full of investors willing to buy your ICO tokens. The problem when you are not cautious enough is that ICOs aren’t regulated by any financial institution. Unlike in the IPOs case where you have the SEC (Securities Exchange Commission), there is no entity to which you can appeal if you discover you were involved in an ICO fraud.

At the moment, ICOs are still operating in a so-called “gray area”. However, we believe that this should change soon even though this would certainly withdraw some of the advantages ICOs have at the moment.

Read more on what you should look for in an ICO here - https://coins.best/icopedia/what-should-you-look-for-in-an-ico/

[KesoNie]

Help me to understand what is ICO ..?

ICO or Initial coin offering is launch when the team wants to collect capital for their project without using a lot of money because they will just offer an ICO to the public and they will offer a coin for exchange of their invested money and they will set a minimum to maximum cap for their ICO and if they will get a successful percent of their ICO then it will continue to do its projects.

[irwanjabryg]

It is like a kickstarter project about making a new kind of cryptocurrency. Be aware while investing because some ICOs could scam you and you get nothing after fundraising the project. I'm not saying that almost are scam, there are some ICOs that gives benefit to the people who help in the project.

If you invest then look at all the team that supports the project make sure everyone in the project can be checked through linkedin account. Lots of ICO this month, you just need precision.
Unless you do not invest there, and just follow the bounty. You just sit and wait for the money to be shared. If your scam will not get dizzy. 

[AleSergio]

It is like a kickstarter project about making a new kind of cryptocurrency. Be aware while investing because some ICOs could scam you and you get nothing after fundraising the project. I'm not saying that almost are scam, there are some ICOs that gives benefit to the people who help in the project.

Maybe the one of the best explanation on this thread. Yeap it is just the thing when you invest your money, by supporting project and after a while receive their goods. In this case you receive tokens =) Scams are everywhere even on kickstarter

[trumper]

Ico is initial coin offering a method for projects to offer their tokens for cash (eth, btc), valuation of tokens is really important, also there is one more thing called ITO

[icol333]

There's something called softcap and hardcap, what's that actually? Are they related to ICO's?

I think it is the minimum fund target and maximum fund target. When soft cap reached the project can still continue but it will be much better if they reached themax for it fully development of the project.

But how if they're unable to reach the soft cap until the pre-ICO/ICO day, or if the project failed in the middle of the process? Will the token be reshared again?

[andreykh]

But how if they're unable to reach the soft cap until the pre-ICO/ICO day, or if the project failed in the middle of the process? Will the token be reshared again?

If the minimum ICO target is not reached until the end of the ICO, that usually means that the project will not be able to implement the roadmap they have because of lack of funds, so people who bought tokens get refunds.

[Shahin320]

An ICO is an event in which a new cryptocurrency project sells part of its cryptocurrency tokens to early adopters and enthusiasts in exchange for money today. ICOs provide a way for cryptocurrency project creators to raise money for their operations. Most ICOs raise money in Bitcoin or other cryptocurrencies

[PANK21]

Help me to understand what is ICO ..?

An ICO or Initial coin offering is a crowdfunding via cryptocurrrency. Its term is confused with token sale or crowdsale that refers a method of selling participation in an economy . It also gives investors an access to the features of a particular project starting at later date meas that you can invest in every different projects that are made.

[Marco Ambrusini]

ico also known as initial coin offering is the process whereby startup or existing companies launches to gain more funding via a cryptocurrency to fund their projects.its also similar to ipo

[Raven91]

Help me to understand what is ICO ..?

Initial coin offering this is were they will have a project of a coin were they were raised a fund for there coin thought the sale or crowdsale of there coin to get funds a lot of people invest in ICO because it can be a big money if the coin pumphe market as we know you can buy the token in a lower price though ICO.

[Lena_Storifier]

I think it has been said enough already on what is ICO, if you want to dig deeper and figure out what are different models and mechanics of ico, please take a look here:
https://medium.com/@StorifierCo/untangling-the-ico-mechanics-9e8976641457

[Ipwich]

Help me to understand what is ICO ..?

Initial coin offering this is were they will have a project of a coin were they were raised a fund for there coin thought the sale or crowdsale of there coin to get funds a lot of people invest in ICO because it can be a big money if the coin pumphe market as we know you can buy the token in a lower price though ICO.

I think by searching in the internet you can easily understand what is ICO, it's a very popular term that is use whenever there is a
crowdsale that is happening and personally I have participated in a lot of ICOs which brings me profit as of now.

[JonahCallan]

ICO (Initial Coin Offerings) - a form of legal capital mobilization by start-up companies - has become a popular financing method for cryptocurrency projects. Today, each ICO is an event in which each new cryptocurrency project will sell a portion of Cryptocurrency shares in the form of tokens to first-time clients and venture capitalists in exchange for money. The ICO will provide a way for the cryptocurrency project creators to make money for their operations. Most ICO earn money by Bitcoin or other Cryptocurrency.

[ViolaDavis]

One of the first uses of the ICO's documentation for the cryptocurrency project was Mastercoin, which was supported by the community on the Bitcoin Forum. Mastercoin is a meta-protocol on top of blockchain. Bitcoin provides additional features that the basic bitcoin class can not do. The ICO will be available in mid-2013. Mastercoin (MSC) has launched over 5000 Bitcoins (BTCs) at a rate of 100 MSC per BTC and sent to "Exodus addresses" during the ICO period.

[Mariya03]

Initial Coin Offering (ICO) ? It is the percentage of the cryptocurrency that is newly issued and sold to the investors in other cryptocurrencies like Bitcoin, Waves, Litecoin and Ethereum. ICO is usually sold to the investor in Bitcoin.

[jimsteel]

A definition is hard to come by, but the most precise one around is “An unregulated mean by which capital is raised for a new cryptocurrency venture. It is used by startups to bypass the conventional fund raising process (such as venture capitalists or banks). In an ICO campaign, a percentage of the cryptocurrency is sold to early backers of the currency in exchange for legal tender or another cryptocurrency (usually BitCoin or Ethereum)

In the most simple terms a initial coin offering is in between an initial public offering (IPO) and Crowdfunding.