What is an ICO (Initial Coin Offering)?

An ICO is the initial offering of a coin and has to do with the financing of a project that aims at the birth of a new cryptocurrency.

An Initial Coin Offering is a fairly popular funding process in the crypto world whereby the developers of a project offer an early token sale to the public to raise funds and develop the token project. If we contribute more money to the ICO, more tokens will be given to us.

Early investors or people who buy in the ICO phase because they believe in the project or simply because when the project manages to develop with the funds collected, the coin will be in high demand and this will positively impact the price of the asset.

What are ICO sales like?

• Sales can be open to the public so that anyone can invest with any amount of money they wish for
• They can also be reserved for private sales with investment funds and other major investors in the market.

The procedure is a free choice for developers.

It is always important to keep in mind that the idea is that you are not selling an investment asset, but you are pre-selling an asset that can be used within a platform.

Advantages of ICOs:

• The authors of the new currency do not have to achieve financing from banks or investors.
• For individual investor users, it serves to finance highly innovative companies directly.

In the end, we can say that ICOs are a new way to start a startup, for the moment it is something that applies mainly to the world of cryptocurrency, but there is the possibility of financing projects outside this world because of its ease and disassociation from third parties such as banks or investment funds.

On the other hand, people who want to invest in an idea they like can do it without any problem of being rejected.