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What is ICO in crypto?
ICO in cryptocurrency
An initial coin offering (ICO) is a way for a cryptocurrency to raise capital. A company looking to raise money will launch an ICO as a way to raise funds. These funds can then be used by the company in the blockchain environment to create a new coin, app, or service.
It is the equivalent of an initial public offering (IPO) that many traditional businesses do to raise capital.
Interested investors can buy into the offer and receive coins issued by the company. Just like in an IPO, ICO can be seen as a type of stock. It is not a precise comparison, because sometimes the ICO itself has utility for a software service or product offered.
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