Initial coin offering today is emerging as a popular and pretty easy source of raising money for businesses, and can be compared to crowd-funding. In other words, block-chain related start-ups can raise funds for their projects in form of cryptocurrencies against their brand’s ‘tokens’ which can potentially offer fair return on investment to the investors. Over the past few years, ICOs have literally become a phenomenon and have swiftly become a controversial and widely discussed topic within the block-chain community.
An initial coin offering works by getting investors to send their funds in form of some popular cryptocurrencies to a smart contract which is supposed to store the capital and, at a later point of time, distributes the appropriate value in the new token.
While ICO is a good means of investing and securing value to crypto-assets to a great extent, the project you invest in should be chosen carefully.
You can easily buy an ICO- crypto market today facilitates easy buying of Initial Coin offering.
However, despite its plus points, many view ICO projects as unregulated securities that allow founders to raise an unjustified amount of capital, while others argue it is an innovation in the traditional venture-funding model.