This infographic provides a detailed look into Initial Coin Offerings. As this is a relatively new term in the world, not many people are aware of what it means, yet it can be explained in very simple terms. It could be described as putting the power of creating new projects or digital tokens into the hands of the people, rather than solely on the efforts of a company. It enables people to buy into and invest in businesses that are offering a new digital currency. It is conceptually similar to an IPO (Initial Public Offering), only it is dealing with new digital currencies.
A digital currency exhibits properties that are very similar to physical forms of currency, such as coins or banknotes, but they allow for transactions that can be instant, and they’re easy to transfer ownership. Depending on the cryptocurrency, some can be used to buy physical goods and services, and can be quite versatile, while on the other hand others can only be used to purchase a particular type of product.
An infographic by Dinar Dirham.