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Initial Coin Offering (ICO) is an unregulated alternative for crowdfunding that is based on new digital cryptocurrencies that have emerged outside the traditional financial system. It has recently become popular by being a major source of capital for start-ups. Ever since the first set of ICO’s - held by Omni Layer (originally Mastercoin) in 2013 and Ethereum in 2014 - completed, many more followed.

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The purchase of tokens within the framework of an ICO is carried out according to the terms set out in the information document. In most cases, a token is purchased with a cryptocurrency, but some projects may accept regulated currencies

It all started with the Mastercoin campaign, where people could support the Mastercoin project by selling Bitcoin in exchange for Mastercoin tokens. This has inspired other projects that have used the Bitcoin Blockchain for crowd-to-point (P2P) funding purposes.

A win-win situation for both parties? Not every time. Most ICO’s fail either due to incompetent ideas, teams, articulation of the project to the public, etc. or they are Ponzi schemes or scams from the very beginning. 51 projects completed their ICOs between 1 July and 25 September 2017, but most of them (59%!) Failed to meet their funding targets.

Initial Coin Offering (ICO) is the token version sold prior to the start of. ICO’s are not legal everywhere. When you invest in an ICO, you are the only person responsible for your money. ICO’s are banned in many countries and are considered investor theft. Before when you decide to invest in an ICO, you should contact an ICO development