What is an ICO and how does it work?

In an ICO, teams generate blockchain-based tokens to sell to early supporters. This serves as a crowdfunding phase – users receive tokens that they can use (either immediately or in the future), and the project receives money to fund development.

What is an Initial Coin Offering (ICO)?

An initial coin offering ( ICO) is a new crowdfunding approach used by blockchain companies. Companies usually create their own virtual currencies or tokens and sell them to the public to raise money to implement their blockchain. Initial coin offerings are a method of raising capital for startups using cryptocurrencies as funding.

How are Icos structured?

ICOs can be structured in a variety of ways. In some cases, a company sets a specific goal or limit for its funding, which means that each token sold in the ICO has a pre-set price and that the total token supply is static.

What is the largest ICO?

More recently, ICOs have generated significantly larger amounts in terms of total funds raised. The largest ICO by this metric is filecoin, a decentralized cloud storage project. During a one-month ICO ending in September of 2017, filecoin managed to raise about $257 million.