Initial coin offering (ICO):
Initial coin offering is the term which describes about selling the block chain based virtual tokens. Cryptocurrency startups can easily raise fund for their projects through this token based economy.
It follows crowd funding methodology while releasing new crypto coins to the network. Before the release of a crypto coins, some percentage of the entity will sold to the network either as a cryptocurrencies or as a crypto tokens.
While opening the ICO window, investors are invited to purchase the virtual tokens, in order to help in the release of new cryptocurrencies, And to make it eligible for legal exchange among all platforms.
Usually the ICO is called as Initial public coin offering (ICPO) where fiat currencies are acceptable to purchase the virtual tokens. But in block chain based ICO there is no way for fiat currencies to take in place, only cryptocurrencies like bitcoin or ethereum are eligible to make exchange for crypto tokens.
For your information mastercoin was the first ICO which was released in 2013 followed by ripple.
As wikeipedia says,
"ICOs are now extremely popular. As of May 2017 there were currently around 20 offerings a month,and a new web browser Brave's ICO generated about $35 million in under 30 seconds. There are at least 18 websites that track ICOs. "
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