ICO (Initial Coin Offering)
Crowdfunding method for crypto projects, selling tokens to early backers.
Detailed Description
ICO (Initial Coin Offering)
What is the main purpose of an ICO?
The primary purpose of an ICO is to raise capital for new blockchain projects.
How do investors participate in an ICO?
Investors participate by sending funds during the ICO period, usually through a smart contract on a blockchain.
What are some risks associated with investing in ICOs?
Risks include lack of regulation, potential scams, and volatility in cryptocurrency markets.
How do ICOs differ from IPOs?
ICOs are less regulated and often provide utility rather than ownership rights, unlike IPOs which involve company shares.
What might future trends in ICOs include?
Future trends may involve increased regulatory clarity and hybrid fundraising models combining ICOs with other methods.