Cryptocurrency Q&A How does ICO make money?

How does ICO make money?

Chiara Chiara Sun Jul 21 2024 | 6 answers 1046
As a curious observer of the cryptocurrency landscape, I'm intrigued by the mechanics of how Initial Coin Offerings (ICOs) generate revenue. Could you elaborate on the key processes involved? Specifically, I'm interested in understanding how a project raises funds through an ICO, how the funds are allocated, and ultimately, how does the project utilize these funds to generate profits that would justify the investment made by participants? Is there a revenue-sharing model or are profits derived solely from the appreciation of the token's value? Clarifying these aspects would greatly assist in grasping the financial viability of ICOs. How does ICO make money?

6 answers

Paolo Paolo Tue Jul 23 2024
An Initial Coin Offering (ICO) is a financial event that marks the introduction of a new cryptocurrency to the market.

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GwanghwamunPride GwanghwamunPride Tue Jul 23 2024
During an ICO, a company offers investors the opportunity to purchase its newly issued digital currency in exchange for financial contributions.

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Stefano Stefano Mon Jul 22 2024
The investors receive the cryptocurrency tokens as a reward for their support, and these tokens often represent ownership in the company or provide access to its services and products.

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ethan_thompson_journalist ethan_thompson_journalist Mon Jul 22 2024
The ICO process is similar to an Initial Public Offering (IPO) in the traditional stock market, wherein a company sells shares to the public to raise capital.

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HanbokGlamourQueenEleganceBloom HanbokGlamourQueenEleganceBloom Mon Jul 22 2024
However, in the case of an ICO, the assets being sold are cryptocurrencies rather than traditional shares.

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