What are Initial Coin Offerings (ICOs)?

Initial Coin Offerings (ICOs) are a popular fundraising method used primarily by startups wishing to offer products and services, usually related to the cryptocurrency and blockchain space. ICOs are similar to stocks, but they sometimes have utility for a software service or product offered. Some ICOs have yielded massive returns for investors.

What is an initial coin offering?

Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company. This token may have some utility related to the product or service that the company is offering or represent a stake in the company or project.

What does ICO mean in cryptocurrency?

ICO meaning in cryptocurrency What does ICO stand for? An ICO is an Initial Coin Offering, a form of investment attraction that appeared thanks to the development of cryptocurrencies, one which blockchain startups widely use. It involves selling a fixed amount of the project's cryptocurrency tokens to investors.

Is an ICO legal?

Initial coin offerings (ICOs) are legal. However, the ICO is illegal if the project and coin don’t pass the Howey Test used by the U.S. Securities and Exchange Commission (SEC) to determine if an offering is an investment instrument. What is an ICO used for?