In short, it’s an unregulated means by which funds are raised for a new cryptocurrency. An Initial Coin Offering (ICO) is leveraged by startups to bypass the strict, highly regulated capital-raising process required by VCs and banks.
At the launch of an ICO fundraise, a percentage of that cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies, most often for Bitcoin.
When a cryptocurrency startup seeks to raise money through their Initial Coin Offering (ICO), typically it creates a written plan and strategy, via a formalized whitepaper which states what the project is about, as to the requirements that the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of funds will be accepted, and how long the ICO campaign last.
The advantage for investors is that when investing funds ICO programmer Investors will be given coins offered from the project at a cheaper price because the coin is not yet in the market buy because it has not been launched,
And when the coin is launched into the market and already there market price will rise sharply until from price before dilluncurkan to market and that is where profits of involved in ICO Project.