What is an "ICO", the financing tool in blockchain
An ICO is a way of seeking financing for a project whose main objective is to attract investors to raise funds. It is a Public Sale Offer (OPV) with the particularity of being based on blockchain. The fundraising tool raised USD 5.6 billion for the 210 startups that used it over the course of the previous year, according to the Business Insider portal. Even more surprising is that in 2018 the amount collected already exceeds USD 9 billion.
When an initiative wants to raise money through an ICO, it usually publishes a "white paper" that determines the conditions and specifications of the project to be carried out. For example, it explains what the venture is about, how much money is needed to run it, how many tokens the business pioneers will preserve, what kind of money is accepted, and how long the financing campaign will last.
ICO is a good initiative for raising funds for implementing a start up project. However, the term "ICO" has been eroded of its significance as many offerers of such ICOs were fraudsters who had eloped with investors money.