The Initial Coin Offering (ICO) is the equivalent of an initial public offering (IPO) in the cryptocurrency industry. A company looking to raise money to create a new coin, program or service may launch an ICO as a way to raise funds.
What is the difference between an ICO and an IPO?
When a company goes IPO, share buyers receive a stake in the company and become shareholders. Nothing like this happens during the ICO. You do not gain influence over the company, you will not be given checks, papers, shares or documents. Such a kind of crowdfunding in order to obtain services or cryptocurrency from these companies in the future.
Investing in ICO is very simple: you just need to start a Bitcoin or Ethereum wallet, learn how to make transactions and choose a project that has chosen ICO on the appropriate platforms.
But be careful because there are still no legal prescribed procedures or laws for ICOs. This is more about a trust-based agreement. Therefore, there are many fraudulent schemes based on the ICO mechanism.