Initial Coin Offerings (ICO)

Emerging in the new blockchain eco system are many companies and start-ups who are exploring and implementing blockchain technology into their fields.

Capital is raised by creating a token or coin for their business then running an Initial Coin Offering or ICO for short. The tokens are considered payment for future goods or services, companies raise millions of dollars for their project by running an ICO.


When a company is releasing a token/coin for an ICO they will publish a whitepaper, this outlines exactly how the token will work and what their token represents.

Some tokens aim to be currency but other tokens may aim to be pre-prepayment for goods or services. Other tokens may used similar to rewards points reveived for repeated custom or offered in return for personal data such as your email address or phone number.

Token holders may even receive rewards or other benefits from the company, this will be outlined in the whitepaper. The whitepaper is the companies vision for their project however, like with any other business, plans and objectives can evolve and change course. Possibly due to sudden advancements in blockchain technology or new regulations put in place by governments.


Companies will also present a roadmap, this outlines the companies plans and targets for the business, generally in a timeline format.

It’s worth noting that the roadmap is not guaranteed it’s just targets and expected time frames for different aspects of the project. Companies can come up against unexpected delays and issues as blockchain technology is still in its early days, these problems could be small and trivial but on the other hand companies may experience issues which see their project collapse completely.

Example of a project roadmap:

Always research online before investing into any ICO.

With crypto currencies being such a new concept and due to their decentralized nature its important to remember that there is very little regulation at this time.

As with any other investments, don’t invest more than you could afford to lose. Crypto currency value can be very volatile and your investments can rise quickly but could also drop in value jusy as fast!