ICO is a type of public offering in which a company sells Coins/Tokens
in order to fund their projects or business growth. These Coins/Tokens can be acquired by interested
investors world-wide. Usually an investor pays for the Coins/Tokens in cryptocurrencies such as Bitcoin,
Ether or Litecoin. The company is using the acquired cryptocurrencies to realize its projects. Cryptocurrencies
can be used to directly pay for goods and services needed. The company may as well exchange the acquired cryptocurrencies
into FIAT currencies (Dollar, Euro, etc.)
From a technical point of view, a company can either issue the Coins/Tokens by itself or
at a cryptocurrency exchange. The issuance through cryptocurrency exchanges is probably the preferable option since these
exchanges usually are well-established in the crypto sphere which goes along with a higher fungibility of the Coins/Tokens
which in the end attracts more international investors. Moreover, cryptocurrency exchanges often maintain well-established
news channels that are connected to potential investors. A listing at one of the cryptocurrency exchanges can speed up the
placement of Coins/Tokens. Besides the Coin/Token holders can profit from future rise in prices.
The transfer of the issued Coins/Tokens into the wallets of the investors is organized
directly with the Blockchain.