What is an ICO?

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Introduction to ICOs

So what is an ICO? An initial coin offering (ICO) is an unregulated means of crowdfunding that is typically conducted via a crypto currency blockchain or custom website built solely for this purpose. These sites truly are amazing and very diverse in their nature, not to mention style and functionality as well. Early ICO’s were often organized just for funding the development of actual new crypto currency tokens/chains, but modern ICO’s have become incredibly elaborate, with separate budgets for marketing, community growth and so on. There are highly different incentives built into many of these crowdsales, for miners, node operators, and investors alike.

 

 

What do you get in ICOs?

In the most common cases, crypto tokens are provided to all or the majority of investors in exchange for funding. Oftentimes, a large portion of the supply will be locked in for a set time, and more often than not, a one-year lockdown will be pop up as the most frequent unit of measure. This is to ensure that early adopters and patient token holders will be able to receive adequate profits, as a fair return for their early support of the new community. This does not mean that this is always the case, not all ICO’s turn out to be profitable upon release, so doing through research is advised.

Even so, the history of crypto currency ICO’s isn’t without its dark spots (always check if an website is real and not an ico scamming one). The most notable being the DAO hack, the first Ethereum ICO and one of the largest crowdfunding campaigns in history.Know more from here:

https://www.coinstaker.com/what-is-an-ico/