ICO News

An initial coin offering (ICO) is a funding method that uses cryptocurrencies. It is often done in the pre-launch phase of the coin. In it, a portion of the cryptocurrency is sold to investors in the form of coins, in exchange for established cryptocurrencies or legal tender. The first ICO was done by Mastercoin in July 2013. One of the most well-known ICOs was Ethereum, which raised approximately $2.3 million in twelve hours. Most startup companies use ICOs as a source of capital. They allow them to avoid intermediaries such as banks or venture capitalists. ICOs have been susceptible to scams, leading to them being banned in several countries. Additionally, they have a very low rate of success, in which fewer than 50% of them survive only four months after the offering. Despite this, $7 billion was raised through ICOs in the period between January and June 2018.

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