Companies who do not have funds to start with their project, raise funds for their development and expansion using the ICOs also known as Initial Coin Offerings. The trade-off in this process is that those who are investing in the coins will be getting a part of the ownership stake in the company. Every token is a unit share in a company. This traditional concept is integrated into the ICOs.
The companies go public, and they raise their funds from individual investors by selling the shares of their companies through the (initial public offerings) the equivalent of which are ICOs. Buyers buy the ICOs either with fiat or other cryptocurrencies. The white paper will tell about the stellar return for the investment.
There is nothing you can be completely sure concerning ICOs. However, ICOs were one of the chief attributes of cryptocurrencies. ICOs used to be complicated and confusing to an average investor when they start at first.
Picking a profitable ICO is an art in itself. Before you consider ICOs read the whitepaper. There are some red flags that you need to be aware of with respect to these offerings. The future of ICOs of a startup or organization is dependent upon the jurisdiction that regulates it and of course their core strategy for the offering. You sure want to avoid the scams and reduce your risk. Then you choose the right opportunities and take advantage of the opportunity.