What is an ICO?

An Initial Currency Offer (ICO) is the world’s equivalent of cryptocurrencies to an IPO in the world of traditional investments. The differences are in fundraising. Usually a company that wants to create a new currency, application or service and then launches an ICO. Then the interested investors buy the offer, either with fiduciary currency or with preexisting digital tokens, often using ethereum. In exchange for their support, investors receive a new crypto-token specific token. Investors expect the token to perform exceptionally well in the future, providing them with an excellent return on investment. The ICO-holding company uses investor funds as a means to furthering its objectives, launching its product or initiating its digital currency. ICOs are used by cryptocurrency startups and tokens in projects to circumvent the rigorous and regulated capital raising process required by venture capitalists or banks.

In 2017 we saw many ICOS arise, some of them fraudulent, and changes in the regulations of certain countries made it difficult or prohibited ICOS, as in China, Nepal and others. There are countries that allow free and others that follow a regulation similar to assets insurance and other existing as in the USA.