Initial coin offerings or ICOs were the first kind of cryptocurrency token sale to be created, and although they really came to prominence in late 2016 and 2017, they had been used for years before.
Notably, Ethereum was one of the first platforms to hold an ICO and their success with the funding mechanism drove other projects to create their own tokens, ironically on the Ethereum blockchain via the ERC-20 protocol, and then to also use ICOs to raise funds.
The period around 2017 saw huge amounts being raised, at one point more than all VC fundraising in the US. However there were also a large number of very shady projects that ended up ripping off their investors, and this created a very negative connotation on what ICOs are.
Saying that they are either completely good or completely bad is inaccurate. They are a wildly successful funding mechanism and many people made 5x + in a few days or weeks using ICOs to invest into, but also many thousands of crypto investors lost money from investing into them and so there is both a positive and negative side to them.
ICO is Initial Coin Offering during the launch of their own project. When Initial coin offers they will sell their coin for lowest price to collect money for their project. They have 2 things Hardcap and Softcap to raise money for the project and team developers.
They also make bounty for public in order to promote the project and gain value in the market.
When joining an ICO you have to see negative things about the project and stay away from most ICO's as they will collect money and don't build the project.
Most of people who became rich from top coins and the rest followed by scams so huge poeple lost their money in these Scam ICO's.
ICO or initial coin offering is a crowdfunding event where a starting up project offers its coin to the mass. Most ICO offer incentives to early investors by giving them incentives on their purchase. This is where projects gather their funds to develop their project which will determine the growth of the project in the long-run.
There are many speculations that the ICO's before are the reason for the bullish market trend in 2017, it is because in order to invest in an ICO, users needed to buy bitcoin/Ethereum/LTC and some famous cryptocurrency first for them to invest in return of tokens from various projects. In this regard, ICO's having a negative connotation is because of the scammers who took advantage of the investors and probably the reason why ICO is now replaced by new investment system which is the IEO's.
Initial Coin Offerings/ICOs? are way to selling their tokens as stock, you can assume that as investor, they ICO opened publicly and anyone could buy they stock then get many benefit or profits on future. It's really helping start up to build or developing their project be better with power of community.
Initial Coin Offerings (ICO) were a medium in which startups or developers can get funds for their projects in exchange, these startups offers a token in return and these tokens would be publicly traded on cryptocurrency exchanges like Binance, Okex etc.
If you noticed, I said ICOs "were" a medium. That's right. ICOs have become a thing of the past as people abused it to get money from unsuspecting investors and didn't actually built what was promise then the token value usually drops and the project ends leaving investors in huge losses. Right now, no one invests in ICOs. More funding mechanism have emerged after ICOs like Security Token Offering (STOs) and Initial Exchange Offerings (IEOs).
ICO or Initial Coin Offering is crowdfunding, wherein they are looking for investors to buy their coin or token at a discounted price. When it is listed to an exchange, the price may go up and you can sell it to a higher price to make profits. Unfortunately, the ICO era has been already ended since 2017 because most of them just took the money of investors and left the project in the air.
ICOs are coins (cryptocurrency coins) that is sold/offered to the public at a specific price, which in turn could be exchanged at an exchange when it would be available, which the price would depend on the demand-supply (much like basic market with buys and sells).