To run a successful ICO, a company sells its own tokens or coins to the public. Often the company writes an article or whitepaper for describing it's uses and plans for the successful ICO proceedings.
The documents are not a prospectus, which is considered disclosure documents required for security laws. For this reason, ICO documentation cannot have all of the important details about the offerings so you should have to consider them before making an investment.
Benefits of ICO:
- Anyone Can Buy Tokens
- Tokens Are Sold Globally
- Less Barrier to Entry
- Instant Buy-In
In general buying an ICO token with another cryptocurrency, such as Bitcoin or Ether. Sometimes ICOs permit you to allow purchases with a government-backed currency, like Canadian dollars. In return, ICO companies develop digital coins that can have a wide range of uses. Sometimes these coins can only be used to purchase the company’s products and services. In some other cases, the coins exist to hold value relative to other currencies.
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