In an ICO, a whitepaper describes the project, which is usually presented by a start-up hoping to achieve success. Investors can expect to find information such as: what the project is about, the team behind it, and how much money the ICO is expected to raise.

During an ICO of a project, the token purchased may provide certain benefits to the owner. An ICO token can give its owner access to a specific protocol or network, so it is referred to as a utility token. A token can, however, simply be purchased with the hope that it will appreciate in value.

In an ICO, funds are typically collected via a public address to which participants send their cryptocurrencies. Alternatively, each participant can have their own account, which will give them their own unique public address.

A successful ICO is one that raises the minimum amount of money. The underlying token of that project is then listed on cryptocurrency exchanges, where it can be traded against other cryptocurrencies. However, if the minimum amount of money is not raised, the ICO will be considered a failure and the funds will be returned.

ICOs are one more type of cryptocurrency that organizations use to raise capital. Through ICO trading platforms, investors get novel cryptocurrency "tokens" in return for their money related investment in the business.

An initial coin offering (ICO) is the crytocurrency industry identical to a first sale of stock (IPO). An organization hoping to fund raise to make another app, or service launches an ICO as an approach to raise reserves. Interested financial backers can get tied up with the contribution and get another digital currency token gave by the company. This token might have some utility in utilizing the item or service the organization is offereing, or it might simply address a stake in the company or project.