Initial Coin Offering (ICO)
An Initial Coin Offering (ICO)An Initial Coin Offering (ICO) is a type of fundraising method used by cryptocurrency startups to raise funds for their projects. It involves selling digital... More is a type of fundraising method used by cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... More startups to raise funds for their projects. It involves selling digital tokens to investors in exchangeA cryptocurrency exchange is an online platform that allows users to buy, sell, and trade cryptocurrencies. These exchanges serve as intermediaries between buyers and sellers,... More for other cryptocurrencies, such as BitcoinBitcoin is like a digital treasure that you can use to buy things online. It's like having a secret code that only you know, and... More or EthereumEthereum is a type of cryptocurrency that is similar to Bitcoin, but with some important differences. One of the key differences is that Ethereum is... More. The tokens are usually designed to serve a specific purpose within the project, such as providing access to a platform or product.
One of the drawbacks of ICOs is that they are often unregulated, which means that investors may be exposed to a higher level of risk. Another potential issue is that some ICOs may be scams or fraudulent, with no actual product or service behind them.
Some famous ICOs include the Ethereum ICO, which raised over $18 million in 2014, and the EOS ICO, which raised more than $4 billion in 2018. Examples of exchanges that supported these ICOs include Bitfinex, Binance, and Kraken.