In case you have not heard of the term ICO, it stands for Initial Coin Offering and is used as a tool for crowd funding. It is different from IPO as here no ownership or stake in the company is offered. These are new cryptocurrency sold to raise money for technical development of an idea.
ICO is not recognised as a security and the ICO space is not regulated by any government or state body.
First ICO was launched in 2013, when Mastercoin raised money via bitcoin. It is called OMNI today. The most popular ICO was Ethereum released in 2014.
Today most of the ICOs are raised on Ethereum where any one can participate in the ICO sale and buy new token by paying in ether. Scores of ICOs are launched every month.
People have to be careful while investing in an ICO as there are a lot of scams happening with the prospect of raising easy money with no regulations.
Things to look for in an ICO:
- Before you decide the buy in an ICO, read its technical paper. It describes the concept, project development plan and objective of the new token
- Learn more about people being the ICO and see that they have success in their past ventures
- Read more about the ICO on various on line forums like reddit, bitcoin forum and make your decision based on real facts
- You can also contact us for any ICO advice