What is initial coin offering (ICO)?
An ICO, or Initial Coin Offering, sometimes also called a “token sale” or “initial token offering”, is a practice of crowdfunding for blockchain projects, where a cryptocurrency or token is offered to early investors, before being listed on the wider marketplace, such as exchanges.
It is advised to do extensive research around the project before investing. This includes reading the whitepaper, working out whether the ICO provides real-world value and researching the team in detail.
Here’s how you can participate in an ICO:
- Own the relevant cryptocurrency that the ICO is accepting as investments.
- Make sure that the cryptocurrency wallet is compatible with the ICO token.
- Triple check the deposit address from official sources.