Investors in more and more countries are able to take part in Initial Coin Offerings (ICO), the means by which companies raise capital for a new cryptocurrency. During an ICO, new digital units are generated on the basis of new or existing cryptocurrencies, and investors can then purchase the so-called coins or tokens. The concept of the ICO is inspired by that of the Initial Public Offering (IPO), or when a corporation goes public for the first time. Still, an ICO has nothing to do with an IPO according to some financial authorities. The providers of cryptocurrencies themselves decide whatever rights or claims are granted to investors.

Source: The Star March 24, 2018 05:03 UTC