Chapter 18. ICO 101
ICO stands for Initial Coin Offering, also called a token sale or initial token offering. An ICO is an event where a new blockchain project raises money by offering network tokens to potential buyers. Unlike IPOs, no equity is for sale. Buyers receive tokens on the network but do not own the underlying project intellectual property, legal ownership, or other traditional equity traits unless specifically promised as part of the sale. The expectation of profit (if there is one) comes from holding the token itself. If demand for use of the new network increases, then presumably so will the value of owning the token.
In this chapter, we are going to cover ICOs, how they came about, and the critical aspects that happen as part of executing one. ICOs continue to evolve, but many events and deliverables have become expected and even mandatory for success.
The first ICO was developed in 2013 by Mastercoin. Mastercoin held that their token, such as bitcoin, would increase in value...
