Initial Coin Offering

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Meaning of Initial Coin Offering

ICO is a means by which funds are raised for a new Blockchain backed Project, venture/business.

Mostly used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.

In an ICO a percentage of the newly issued cryptocurrency is sold to investors in exchange for legal tender or other cryptocurrencies such as Bitcoin.

Investors get coin/token in return for their financial contribution to the ICO, which they can trade off later after project launched for profit or use token within the project ecosystem in cases of utility tokens.

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