ICO is a popular method of raising startup funds in the form of cryptocurrency. It’s a process of raising funds for the new project by encouraging investors to pay with cryptocurrency.
ICO is just like buying shares in a company, but this time in cryptocurrency. ICO is also likened to crowdfunding, as you would see for computer games. Though in all this, investors (angel investors and venture capitalists) are always encouraged to pay in virtual currencies. Usually, the investors pay with popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). BTC and ETH are the predominant cryptocurrencies.
It is an alternative hot way of fund raising mechanism to launch a new cryptocurrencies in the marketplace.It is similar to IPO (Initial public offering) or crowdfunding .The process behind Initial coin offering is that a company presale their new digital currency to investors at discount rate to establish their digital currency and launch their startup in the market.