Initial Coin Offering

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Home Startup Terms Glossary Initial Coin Offering

What is Initial Coin Offering?

An initial coin offering (ICO) offers a way for cryptocurrency startups to generate revenue to create a new app, coin or service. When a startup aims to offer a new cryptocurrency and they launch an IPO, a large group of investors have the opportunity to buy the coin. When an investor purchases through an ICO, they receive special cryptocurrency “tokens” in exchange for their investment.

Initial Coin Offering Examples:

Some key concepts of initial coin offerings are listed below:

  • Example 1. Typically related to the cryptocurrency and blockchain space
  • Example 2. Similar to stocks, but they can sometimes have utility for a software service or specific product being offered

Learn more about initial coin offering with this article .

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