ICOs Are New Fad Among Investors

But, there are chances that the investments may fade away too:

- Mohan

Initial Coin Offerings (ICO) are unregulated means by which funds are raised for a new cryptocurrency venture. An ICO is often used by startups to bypass the highly regulated capital-raising process. Here most often a percentage of the cryptocurrency is sold to early backers of the project in exchange for legal tender or other cryptocurrencies.

A recent report in Knowledge@Wharton says ICO is for tech startups looking for capitalize a virtual dream. “It lets them raise millions of dollars online with just an idea for a product or service to be delivered in the future. For investors, the allure is the ability to invest any amount very early on in startups whose cryptocurrency could soar in value. Such is the attraction of ICOs that the first quarter saw record 152 offerings hit the market, raising $4.83 billion.”