The cryptocurrency version of an IPO. It’s the initial launch and distribution of tokens on a cryptocurrency exchange; a way to attract investment in a product or project for the creation of a new cryptocurrency. Once the investment period comes to an end, the newly released cryptocurrency is distributed proportionally among investors. The funds received from the ICO can be resold at a higher price on other exchanges or one can keep them and receive dividends. In contrast to IPOs, with the ICO system, there are no ownership rights or other rights traditionally enjoyed by shareholders.
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