what is anICO
Because many media are talking about the ICO and not everyone knows what it is. The initials correspond to Initial Coin Offering, which corresponds to the initial offer of currency.
It is a method by which a cryptocurrency linked to a project is issued. Thus, it can be used to raise a very large capital to mount the project behind it.
An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
For traditional companies, there are a few ways of going about raising funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners but having to wait for funds to build up.
Alternately, companies can look to outside investors for early support, providing them a quick influx of cash but typically coming with the trade-off of giving away a portion of ownership stake.
Another method sees companies go public, earning funds from individual investors by selling shares through an Initial Public Offering (IPO).