ICO is an abbreviation for Initial Coin Offering.
It is a means by which a company or business project that wants to raise funds issues and sells its own cryptocurrency tokens to raise funds.
Investors are asked to purchase the tokens, but basically there is no payment of compensation such as voting rights or dividends like in the case of stocks.
In addition, because tokens can be sold without going through securities companies or other auditing institutions, there are tokens that are not trustworthy and have been created for fraudulent purposes, so care must be taken.
History of ICOs
The first ICO was conducted by Mastercoin in 2013.
In 2014, the Ethereum (ETH) ICO successfully raised approximately $18 million worth of bitcoin, proving that ICOs can work well as a fundraising tool.