An ICO can be a source of capital for startup companies. ICOs can allow startups to avoid regulations that prevent them from seeking investment directly from the public, and intermediaries such as venture capitalists, banks, and stock exchanges, which may demand greater scrutiny and some percentage of future profits or joint ownership
ICO, or initial coin offering, is a kind of funding done at the initial level of a business or project however the ICO development process is largely taken up by crowdfunding. Cryptocurrencies are offered to the potential investors who show their interest in funding that particular project.
During an ICO sale, a new company sells its cryptocurrencies as “tokens” to interested investors in exchange for other cryptocurrencies or fiat currency.
In Conclusion, the tokens can be of various types, such as utility tokens or payment tokens, each of which has a different purpose. These tokens are offered to the investors in exchange for Legal tenders or other cryptocurrencies like Bitcoin or Ethereum, which are famous cryptocurrencies in the share market in terms of value.
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