Frequently Asked Questions
The abbreviation ICO stands for "Initial Coin Offering". It is a type of fundraising where in exchange for cryptocurrencies (e.g. Bitcoin, Ethereum) or fiat money (e.g. USD, EUR) investors receive tokens of a new cryptocurrency venture. Later, these tokens can be used on the project platform as an internal currency, or they can be traded on exchanges. Any individual or a company can crowdfund any project or become an investor.
By launching an ICO campaign, the project can raise the funds it needs to develop its business. The funds are used to finance the company's development, marketing, expansion of its team, and more
A token or a coin is a digital asset issued during an ICO campaign and sold to the public, usually for other popular cryptocurrencies, namely BTC or ETH, or sometimes directly for fiat currency. While standard cryptocurrency has its own blockchain, tokens are usually hosted on another blockchain (e.g. Ethereum platform).
By buying a certain number of tokens, you help the investors to crowdfund the project and to raise funds. Once an ICO campaign is successfully finished, the token developers can release the tokens on an exchange, where they can be traded like any other cryptocurrency.
A white paper is a document prepared by the ICO organizers/token developers prior to launching the new cryptocurrency. It contains information about the cryptocurrency, including commercial, technological and financial details.
A crypto airdrop is when a blockchain project distributes tokens to the community, either for free or for performing small tasks.
A Bounty is a way to earn tokens in exchange for helping the cryptocurrency project, for example, by promoting it in social media, referring it to friends or translating to another language or. Different ICOs have different Bounty Programs.
Fraud. The ICO organizers may collect the money of users and then disappear without any intention of launching their project.
Unsuccessful ICO. When you contribute to an ICO, there is never a guarantee that the product will succeed, either with their ICO or in their future development. You should think of your contribution to a campaign as a donation to a project to support its potential development, and the tokens as a reward for your support.