Posted: 01.07.2021 | 13:18
What is ICO (Initial Coin Offering)?
ICO is the abbreviation of Initial Coin Offering and its Turkish equivalent is Initial Coin Offering (ICA); It refers to the system of raising funds by investing in a certain cryptocurrency project to be launched. Before a new cryptocurrency is introduced, users can pre-sell crypto/tokens so that they can have future income or benefit from the increase in value of cryptos. Investors who buy tokens at a more favorable value hope to get a good return on investment in the future without owning any shares.
It is traded as a fundraising method initiated by a company that wants to raise money from investors for the purpose of creating a new application or service. Investors interested in this opportunity can buy the offer and get the new cryptocurrency that the company offers them.
This token can be an extra benefit or feature of the service that the company raises money to provide, or it can be a share of a project of the company.
FIRST CRYPTO MONEY WITH ICO
Since 2013, the ICO is often used to fund the development of new cryptocurrencies. The first cryptocurrency offered by the ICO was Ripple in 2013. Its trading has developed with cryptocurrencies such as Bitcoin and Ethereum. Especially the success of Ethereum has become widespread. In mid-2014, Ethereum reached the largest ICO move in history, selling its ETHs and raising approximately $20 million in funding.
Today, ICOs; It has different versions such as ITO (Initial Token Offering), STO (Securities Token Offering) and IEO (Initial Exchange Offering).