What is an ICO (Initial Coin Offering)?
Maybe some of you are still wondering about the definition of an initial coin offering or what is usually abbreviated as ICO. ICO is a means of raising funds through offering a new type of coin or new cryptocurrency service. The coin in question is a cryptocurrency.
Then investors who are interested will make a number of offers, either in other crypto currencies, for example bitcoin, or in real money. Then the investor will receive a new cryptocurrency token specifically for the ICO. This token contains the number of coins earned by investors who have handed over a certain amount of money.
The cryptocurrency company will use the investor funds it has obtained as a means to achieve its goals, namely launching a product or starting a digital currency. Investors will make a profit if the value of new coins continues to rise against real currency.
Initial Offer Period
When a company wants to raise funds through an initial offer, it needs to provide a detailed explanation of the project details outlined in the form of a proposal.
The contents of the proposal must explain the project to be carried out, everything needed for the project, the desired achievements of the project and most importantly a statement regarding the amount of funds needed to carry out the entire business.
In the proposal it is written what the maximum number of coins will be in circulation, and how much will be offered to initial investors.
If these initial investors are interested, and the minimum funds are met, the company will continue executing its business plan. However, if the required minimum funds are not reached, then the money will be returned and the entire ICO is considered a failure.