What is an ICO
ICO (Initial Coin Offering) is a way to raise investment for new cryptocurrency projects. Projects create and sell their tokens to investors in exchange for cryptocurrency or fiat money.
Why are ICOs needed
🔵 Capital raising. Projects can quickly gather funds for development and launch.
🔵 Accessibility. People from all over the world can invest.
🔵 Innovation. Allows launching new ideas and technologies.
How does it work
🔵 Token creation. The project issues its tokens on the blockchain.
🔵 Token sale. Tokens are sold to investors, often through a platform or the project's website.
🔵 Use of funds. Funds are used to develop the project, and investors receive tokens that may increase in value.
ICOs allow for quick fundraising, providing global access to investors and supporting innovation. However, they carry high risks, including the possibility of fraud, lack of regulation, and token volatility.