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We all have heard of the term "IPO". Let us learn about the web3 version of IPO's 🚀

What is ICO?

An initial coin offering (ICO) is the cryptocurrency industry’s equivalent of an initial public offering (IPO). A company seeking to raise money to create a new coin, app, or service can launch an ICO as a way to raise funds.

Interested investors can buy into an initial coin offering to receive a new cryptocurrency token issued by the company. This token may have some utility related to the product or service that the company is offering or represent a stake in the company or project.

How an ICO works?

When a cryptocurrency project wants to raise money through an ICO, the project organisers’ first step is determining how they will structure the coin. ICOs can be structured in a few different ways, including:

• Static supply and static price: A company can set a specific funding goal or limit, which means that each token sold in the ICO has a preset price, and the total token supply is fixed.

• Static supply and dynamic price: An ICO can have a static supply of tokens and a dynamic funding goal—this means that the amount of funds received in the ICO determines the overall price per token.

• Dynamic supply and static price: Some ICOs have a dynamic token supply but a static price, meaning that the amount of funding received determines the supply.

That's it for the day, Web3Shala Signing Off ✌🏻

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