Initial Coin Offerings or ICOs are some of the most common crowdfunding ways through which new blockchain projects are able to raise funds. In other words, it is cryptocurrency’s own way of incorporating IPOs (Initial Public Offering) into the market.
The journey of an ICO starts with the company launching its whitepaper. This gives the potential investors a clear roadmap on the project’s goal, the total number of tokens that will be minted, and their overall distribution network.
In ICOs, tokens are also given at a discounted rate, giving investors the opportunities to make profits. Tokens sold during ICOs also offer utility. This means the tokens can be exchanged for accessing certain services or products offered by the company.