We are all familiar with an important term of the stock market, Initial Public Offering (IPO). The first public offering of cryptocurrency, like IPO, is called Initial Coin Offering (ICO).
Creating a new coin, app or service requires a huge investment, to raise that amount, companies issue ICOs. Interested investors can purchase the ICO and obtain a new cryptocurrency or token issued by the company.
The token may be used to use the product or service offered by the company or it may only represent participation in the company or project.
Initial Coin Offering (ICO) is a popular fundraising method used primarily by startups seeking to offer products and services.
Some ICOs have given good returns to investors while many ICOs have run away with large sums of money from investors.
The ICO, for the most part, is completely outside the realm of law. Investors should therefore exercise a high degree of caution and discretion when conducting research and investing in ICOs.()