What is ICO - in simple words

ICO is a relatively new form of investment, the emergence of which is associated with the development of crypto currency. The term itself is an abbreviation for Initial Coin Offering. The literal translation is "primary placement of coins" or "primary monetary offer".

If you are interested in investments and crypto-currencies, then you have probably already come across this term. In simple words, ICO is crypto-currency crowdsharing, that is, collecting money for something on the side. Often in ICO projects are involved, which in one way or another are related to the technology of blocking and crypto currency.

Between the IPO, the initial placement of shares, and ICO have much in common. The main difference is that investors in the IPO buy securities (shares) for the currency, and in the case of ICO, the internal currency of the project is a token. The main task of the initiators of crypto-currency crowdsfunding is to sell as many tokens as possible. Rather, sell enough coins to develop your project. Their real value remains uncertain until the project is released to the exchange.

The buying side, that is, investors, in the future will be able to use the startup tokens to obtain services, services or goods provided by the ICO. Either even get dividends or sell tokens if the project goes to the stock exchange and further increases in value.

What other terms exist in the crypto-currency world, tell me please. I'm just starting to understand this, and sometimes I do not understand much.