An initial coin offering (ICO) is the type of crowdfunding tailored for the cryptocurrency, which normally becomes a source of capital for startup companies. In an ICO, a certain quantity of the crowdfunded cryptocurrency is provided to investors in the form of tokens or coins, in exchange for other existing cryptocurrencies such as bitcoin or ethereum. These tokens or coins are supposed to become functional units of currency if or when the ICO’s funding goal is met and the project launches.
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