As ICOs become mainstream, entrepreneurs may wonder if they are a fit for their ventures.
ICO, which stand for initial coin offering, is a means of crowdfunding that is being increasingly used by startups as a replacement or supplement to raising venture capital. Already the amount raised by ICOs in 2017*, $180 million, exceeds the $101 million raised in all of 2016.
What is an ICO?
In an ICO, tokens are sold to the general public, which in turn, provides something similar to equity ownership for the token holder. The selling of these tokens is referred to as a “token sale” or “crowd sale.” Blockchain, the digital ledger behind bitcoin, enables the creation of tokens that have value in and of themselves.