If it seems like lately everybody is talking about ICOs, it’s because startups are funding their businesses by raising millions of Euros or Dollars by issuing tokens. But it’s not as easy as it sounds!
An „Initial Coin Offering“, sometimes referred to as an „Initial Token Offering“ (ITO), is a new investment mechanism. The basic concept is based on principles similar to those of an „Initial Public Offering“ (IPO), the procedure by which a private company offers stocks to the public for the first time to generate investment capital. The difference between an IPO and an ICO is that the company offers cryptocurrency coins or tokens instead of stocks to raise funds. These tokens represent the “currency” of the company and can, in most cases, be traded for its products or services.
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