Beginners Guide

A Quick Guide on Initial Coin Offering (ICO)

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Oct 2, 2020

Are you looking to make it big in Cryptocurrencies lately? It is time to start following trends of Initial Coin Offerings. 

The idea of presale coins or tokens of blockchain projects proved to be a successful way to raise funds to develop new projects. The amount of money raised through ICOs in previous years is quite astonishing. In 2018 alone, there were 1258 ICOs announcements, raising funds of $7,852,477,041.

What is ICO?

ICOs abbreviated as Initial Coin Offering, has become a prime source of crowdfunding systems,  in exchange for cryptocurrencies or tokens for funding project developments. The developers collect funds from investors to launch the project. The whitepaper contains the technical details of operations of cryptocurrency, and the developers work to design the currency to support the project.

Today, most token sales run on the Ethereum blockchain via a smart contract. These smart contracts collect Ethereum tokens and automatically exchange them for new tokens owned by a startup. This is a P2P system that does not require any exchanges or brokers as middlemen.

At the time of penning this down, there were more than 7000 cryptocurrencies listed on the website Coinmarketcap. More than 1,000 coins are now available on various exchanges, and many are in the process of listing. Notably, not all cryptocurrencies get hosted on their unique Blockchain. They get ...

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