Foundations of Blockchain

Coin offerings

Initial Coin Offerings (ICO) are created for the previously-mentioned tokens to raise the initial capital for a project. ICO is a crowd-funding process in which anyone who is willing to contribute to the project can become a part of it and own a certain part of the tokens. ICOs can offer any kind of token, but security tokens are the safest token due to their visible economic value. But this makes the ICO more complicated because it requires that you use know your customer (KYC) procedures to identify the identity of the user. Utility tokens are most commonly used in ICOs due to the simplicity of defining the token's functionality compared to security tokens.

Most of the tokens offered during ICOs are created in the existing ...