What is An Initial Coin Offering? Raising Millions In Seconds by Ameer Rosic

TL;DR - ICOs are essentially a type of crowdsourcing using cryptocurrencies. There are many uncertainties in the industry but also many pros.

Helpfulness - 4

Tags - initial coin offering, creative funding strategies, Pros and Cons of ICO

Questions answered:

  • What is an ICO?
  • How does an ICO work?
  • What are pros and cons if ICO?


  • ICOs lack formality or harsh rules unlike some of the other forms of fundraising
  • ICOs are incredibly successful, raised $5.6 billion in 2017
  • ICOs are basically blockchain crowdsourcing, the cryptocurrency version of crowdfunding
  • Anyone can become a part of the investment to support DApp developers
  • ICO started with Ethereum raised 0.4 million dollars in 2014
  • Ethereum is most prominent cryptocurrency funded by ICOs
  • Pros:
    • ICOs give promising projects an opportunity to shine
    • many projects in VC world don’t get to reach IPO due to large amt of paperwork, ICO don’t require any
    • Establish bridge between company and community
    • Collected $6.8 billion in 4 months, shows widespread support
  • Cons:
    • Can be scammed by hackers since no paperwork required
    • There is no certainty when you invest in project, there are no regulations so it’s all based on the team’s credibility
    • ICOs are increasingly being watched by SEC and CFTC

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