What is an ICO?

What is an ICO?

Initial Coin Offering, also known as ICO is a method that cryptocurrency and blockchain platforms use to raise funds for their project. ICO is quite similar to Initial Public Offering (IPO) used by companies.

When a company goes public, they issue an Initial Public Offering (IPO) which allows the general population and investors to purchase a stake in the company in exchange for monetary funds. The same way when a company develops a new product or service that relies on virtual currencies and blockchain technologies, they issue an ICO.

This ICO listing provides rewards to the user in form of discounted product or services. They can also issue an existing cryptocurrency to its users or even issue their own crypto tokens. This allows the people who invested in the company to benefit financially by becoming a stakeholder in the company.

An attractive aspect of being an early adopter in an ICO is that you often get bonus tokens or other linked benefits. Since the project is new, the initial price of the tokens is usually quite low. This can lead to phenomenal profits once the company starts to grow. This way users can expect a handsome return for their investment and belief in the company. It also allows entrepreneurs and businessmen a chance to launch their platform into the world.

The first cryptocurrency distributed through an ICO is most likely Ripple, In 2013, Ripple Labs were developing a payment system for which they set an upper limit of 100 billion Ripple (XRP) tokens. These tokens were sold to the general population to fund the development of this platform.

As with any form of investment, ICOs can be both a good and bad thing. You may lose all your money but you can also potentially make a lot of money through ICO-led investments. The key thing needed to succeed is staying updated and informed about the company, its team members, news and events that the company is a part of.

ListofICO.com is the best place to learn detailed information about various ICO companies.

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