What are Initial Coin Offerings (ICOs)?

Initial coin offerings (ICOs) are a popular way to raise funds for products and services usually related to cryptocurrency. ICOs are similar to initial public offerings (IPOs), but coins issued in an ICO also can have utility for a software service or product. A few ICOs have yielded returns for investors.

What is an initial coin offering (IEO)?

Initial Coin Offerings and Initial Exchange Offerings are similar in many ways. The key difference is that an IEO is not hosted solely by the project’s team, but alongside a cryptocurrency exchange. The exchange partners with the team to allow its users to buy tokens directly on its platform. This can be beneficial to all parties involved.

What is a cryptocurrency exchange (IEO) & how does it work?

Known as an IEO for short, this is where a cryptocurrency exchange oversees the token sale. The benefits are clear: blockchain projects go through a comprehensive vetting process where their white paper is scrutinized, and their crowdfunding drive will also get publicity.

How effective are initial coin offerings?

Initial Coin Offerings have been tremendously effective as a means for projects in their early stages to acquire funding. Following the success of Ethereum’s Initial Coin Offering in 2014, many organizations were able to acquire capital to develop new protocols and ecosystems.