An ICO stands for “Initial Coin Offering.” It is a fundraising mechanism through which new projects sell their underlying tokens in exchange for Bitcoins or Ethereum. The ICOs are open to the public.
This means that there can be investors in a decentralized manner. Which means people from all around the world can invest in the project. Through this becomes easy to raise funds. The concept of Cryptocurrency ICO means that the people can participate in the shaping the future of that entire system. “Raising money through ICOs is much easier than raising funds through venture capital,” said, Zhao Changpeng, the CEO of popular crypto exchange Binance.
The online nature of the ICOs lowers the marketing and the settlement cost. Similar to traditional crowdfunded business, a network of supporters benefits the ICO-funded start-ups. The supporters also get the benefit of tokens of which the value increases based on usage. an ICO removes this limitation and opens up opportunities for anyone in any geography. This democratization essentially allows anyone to contribute.