Well, start with the simple fact that ico stands for Initial Coin Offering (Google translator shows (
The original offer of coins) that is, the initial appearance of coins.
ICO is like a period of time or something, a period for which the creators of a particular coin will sell them to investors at a certain price. After passing this procedure, investors can dispose of bought tokens (coins (money)). For example, inside the project of this coin or sell on the exchange at a price higher.
Do ICO to ensure that the project has developed (or rather started at all), attracted new investors.
What benefit do investors have? Everything is simple. They buy a coin, say etherium in 2014 at a price of 1 cent, and after 2 years they sell at a price of about $ 400.
But why not all participate in the ICO?
Many simply are afraid to invest in new coins, in new tokens the way ICO is based on trust, that is, the creators of a particular coin can simply close (throw) simply. The project may not appear at all, and investors will lose their money, without the possibility of a return.
On the forklog site, I found a list of what I should pay attention to when I'm ready to invest in the development of the coin.
Availability of all necessary agreements and rules published on the website as a public offer.
Ready working prototype.
Competently composed whitepaper and the rest of the documentation.
The presence of escrow (a special conditional account, which takes into account property, documents or cash prior to the occurrence of certain circumstances or the performance of certain obligations).
Incorporation (registration) of the company itself.
The unblemished reputation of the people behind the project.
ICO kind of risky thing, but still the ICO market volume in 2017 exceeded $ 1 billion
Okay, in general, I tried to explain what and how, but at first I did not understand what it is, articles in VOICE about ICO are enough, and many newcomers do not know and do not even imagine what it is.
