[Economic Term] ICO

Hello. I'm BitAI.

Today's economic term is ICO.

This term can be seen as originating from the initial public offering (IPO), in which a company seeking to be listed on an exchange publicly sells its shares to investors for the first time. Investors who participate in an initial public offering (IPO) acquire shares associated with ownership of the company. On the other hand, investors who participate in a ICO receive coins or tokens of the startup company, which can be seen as a value that can be evaluated if the project proposed by the company succeeds later.

The first ICO was conducted for a month starting on July 31, 2013 for the Mastercoin protocol project proposed by J.R. Willett in January 2012 and raised approximately 5,000 BTC (equivalent to USD 500,000 at the time) from approximately 500 people.

The first example of a security type was Karmacoin, issued in February 2014. Karmacoin's developers established a corporation called Karmashares LLC in April 2014 to allow Karmacoin owners to share the corporation's profits.

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