Initial Coin Offerings, or ICOs, are very similar sounding to IPOs (Initial Public Offerings) which is the term for a company going public and selling their shares to the public. While they sound similar, they are usually far from the same. When investing in an ICO, the investor invests in an idea or sometimes (rarely) in a currently operated business, in return for a token. The investors aim is to have the token they bought rise in value once the company has introduced their token to their actual users (such as in-game coins, or token for artists to get paid for usage of their images like Kodak is doing) or they start to market and grow their amount of users using the token.
This is the same as an IPO, where you buy a share of a company in hope for the share (the value of the company as a whole) to increase. However, since the cryptocurrency market is fully decentralized, there are no strict regulations like it is on the stock exchange market such as NASDAQ. This results in a lot of unserious companies trying to profit from the interest in ICOs, and many weird ideas get millions upon millions of dollars of funding without a real business plan.
In this section, you will find everything related to ICOs. We will write objective overviews of upcoming ICOs as well as guides when investing in an ICO. We review as many ICOs as possible to make it easier to understand their goal and mission by looking at their whitepaper. Enjoy!
Hektor E J
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