Initial Coin Offerings (ICO) is one method of raising funds applied to blockchain projects. Coin/token developers originally used the term ICO, (IPO on shares). and selling their coins/tokens to retail investors, in general investors also get returns from staking and airdrops and capital gains if their new coin/token projects are successful. The advantage of investing in ICO, buying at pre-release prices are still cheap, but not for long-term investment. Disadvantages of ICO, many ICO developers are scammers, funds collected from retail investors are often taken away. So at the moment, ICO projects are not trusted by investors.
Initial Coin Offerings (ICO) Overview
- Thread starter Suba
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The bad thing about ICOs is that few really took their course and were a real project, which resulted in a tremendous level of scams in their initial stage, today they have a dubious reputation for it, but those that worked left giant returns to their early investors.
People who participated in ICOs are definitely going to be given free cryptocurrencies because it's an avenue to create brand awareness for a new crypto projects.
I think you are talking about airdrops, the icos are early pre-sales of new coins before they go on sale to the general public, such as the cosmos atom coin was an ico
You are not urgent to invest the money so for example you wait for first ICO released and then after that you are waiting that the ICO is finished and coin is listed on exchangers then participate on second one.
It is also an opportunity for crypto investors to take advantage so that you can sell at higher price later.