The birth of ICOs and altcoins

What is an ICO?

An ICO, or "Initial Coin Offering", is a fundraising method used by cryptocurrency projects to create new cryptocurrencies, altcoins or service tokens.

ICOs are generally part of the blockchain technology and cryptocurrency sphere and have played a role in the creation of many altcoins.

In the ICO process, project teams that develop a new cryptocurrency or service offer the pre-issued tokens for sale to the general public, usually in exchange for Bitcoin or Ethereum.

This method is often similar to traditional IPOs (Initial Public Offerings), where companies sell their shares to the public.

ICOs allow projects to raise funding directly from the community without the need for traditional investors or banks. This promotes decentralisation and often allows projects to develop faster and more flexibly.

However, ICOs are not always successful and many have failed in the past.

In many cases, projects overestimated market interest or simply failed to deliver the intended product.

Some ICOs have been backed by fraudsters, where project developers simply disappeared with investors' money.

ICOs are an important part of the cryptocurrency ecosystem and have facilitated the birth of many altcoins. They have had a significant impact on raising money in the cryptocurrency market, although their regulation varies in different parts of the world.