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Rachel Welch

16 October 2022 273 Read Altcoins

What Is an Initial Coin Offering?

An ICO, or initial coin offering, is an offering of coins to raise money. In many cases, an ICO is a form of crowdfunding. However, there are cases where an ICO is a private one, where it does not solicit investment from the general public. To understand an ICO better, it is important to understand its structure.

To participate in an ICO, you need to invest money at a compatible crypto wallet address. In exchange, you will receive a set number of tokens. Tokens represent a share in the company or project. Depending on the type of token, these tokens can have a recognizable value, such as shares of unrealized proceeds, or be of no recognizable value at all. Although ICOs can be lucrative, they are largely unregulated, which makes them vulnerable to scams and fraud.