Short definition of ICO
ICO (Initial Coin Offering) it is an action consisting in gathering money by investors for business projects using blockchain, usually associated with cryptocurrencies.
How ICO works?
Let's assume that a company has a great project, but they haven't money to develop it. In this case, the very convenient way is to create ICO - sales of "tokens" that help raise funds. A good projects that arouse great interest often gather the required funds very quickly, for example, million dollars.
Unfortunately, the ICO may be an ordinary scam. After reaching enough money, the company disappears and all tokens become worthless. According to Wikipedia, about 10% of ICO is a scam.
Which project was the most successful ICO?
One of the best ICO in history was Ethereum. The sale took place in 2014, and the company that issued the project collected about 4.8 million dollars for the first 24 hours.
is it worth investing in ICO?
You'll probably ask why people spend thousands of dollars on a project that might just be a scam? After the company has raised the capital for the development of the project, it is likely that ICO will enter the stock market, but if it happens, we will be able to trade and earn from the tokens we have bought, which will probably increase on the price
Your opinion
And according to you, investing in ICO is profitable? Share your opinion in the comment! I would be grateful if you would give me an up-vote!