ICO is similar to a term we are much familiar, IPO. The only difference is that ICO is crowd-funded by selling coins on blockchain while IPO is crowd-funded by selling shares. In general, investors can use Bitcoin or Ether to purchase the newly issued coins. And the new startups can exchange the pool of cryptocurrency into fiat for the company's operation cost.

The tokens/coins issued through ICO are actually cryptocurrency instead of digital currency. Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. They are usually issued through a smart contract in Ethereum blockchain. Over the two years, the ICOs have already crowd-funded 440 million US dollars and successfully started a new page for many blockchain startups.

The coin issued in ICO mainly has three roles:

It represents company’s product
It represents the right of profit sharing
It represents corporate bonds


It is the most common way of the coin usage. The coins can be used as a medium of exchange for certain amount of product or services. It could also be used for trading in a project.


This role is gaining popularity as it functions very familiar to company share. The amount of coins could be thought of certain percent of a company’s shares you own. The profit transfer could be done through Ethereum smart contract.


The coin is like a loan. The coin owner is able to receive interest based on the pre-set rate. The fund transfer could also be done through Ethereum smart contract.

Regardless of the role of a cryptocurrency, an ICO usually raised around one to twenty million US dollars (1.2 million US dollars on average), and it benefits a lot on both investors and blockchain startups. In terms of investors, ICO has a strong liquidity, and blockchain technology also helps a lot in protecting investors’ right. In terms of blockchain startups, ICO provides them a simpler and quicker way to do fund raising than a traditional method. It is also boarder-free that it can connect to every investors in the world.

Nevertheless, a red light is always given to many blockchain startups with great potential and good ideas mainly due to insufficient technical knowledge or support. And at the same time, with the increasing demand of hosting ICOs, it derives a lot of ICO that are under-qualified. As a matter of fact, icoinvestment.club is determined to provide a solution to these enthusiastic startups to host their ICO and to provide a simpler way for investors to participate into them.