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21st Money Education

All About Initial Coin Offerings (ICOs)


What are ICO’s? ICOs are the vehicle that bring new cryptocurrencies and tokens to the crypto marketplace. They are also used to generate capital for venture capital projects. US$4.9 billion dollars were raised through ICOs in 2017

  • How do you get involved in them?

  • Are they legal?

  • Can anyone participate in one?



The term ICO is an acronym for the words Initial Coin Offering. When a new cryptocurrency is created and made available to be purchased by the public, that sequence of events are termed an Initial Coin Offering(ICO). To simplify this even further you can define an ICO as the introduction of a new blockchain to the cryptocurrency marketplace.


The digital Decentralized Autonomous Organization (DAO) was the first to attempt fundraising with tokens using the Ethereum platform. The DAO was successful in raising funds, more than $150 million on the 1st try. A vulnerability was discovered and exploited by hackers who attempted to steal millions. A hard fork was deployed and executed by the Ethereum network rolling back time making the theft disappear. Even though this attempt was a failure. digital ledger technology developers recognized the ease of launching tokens to raise capital versus raising capitol through the traditional venture capital model. The DAO’s death was educational and give birth to the ERC20 standard. The more popular protocol for ICO issuance.


ICOs have come under scrutiny by the taxing authorities of many nations, because tremendous amounts of capitol have been raised through this unregulated sector of the finance industry. In 2017 approximately $4.9 billion US dollars were raised using ICOs. Two cryptocurrency tokens alone nearly accounted for $1 Billion of the capitol raised in 2017.

There are some attributes of the cryptocurrency market that help traders remain anonymous. $4.9 billion worth of an untaxed and unregulated sector of investment instruments being traded anonymously may change. Governments and bureaucrats are intensely trying to find a way to siphon taxes from the traders involved in profitable cryptocurrency trades within their borders. Knowing what your tax liabilities are is big part of your participation in ICOs. Laws are being written and rewritten constantly.


ICOs are structured similar to IPOs and crowdfunding. A portion of the company or project is sold in order to raise money to further develop the entity. The major difference is that IPOs are pursued by investors in a security, regulated and defined by a governmental regulatory body. For those that are subject to the authorities of the US, that regulatory body is the Securities and Exchange Commission(SEC). Whereas ICOs are driven by supporters interested in investing in a new project or aspect of technology. ICOs differ from crowdfunding with a subtle nuance of great importance. ICO supporters are involving themselves with the prospect of receiving a return on their investment. Crowdfunding participants provide donations to the project not seeking or expecting reciprocity. ICOs are sometimes referred to as crowdsales for this reason.

Currently ICOs are being used with great success to raise capital for venture capital enterprises. Innovative website coding is being funded through ICOs as well as telephone and computer, games and apps, with great success.


US$3,000 invested properly in 2010 had the possibility of being worth $89 million at the height of the cryptocurrency rally in 2017. That statistic helps us all realize the wealth potential of timely and strategic investments in ICOs.


Interacting with informative cryptocurrency websites and forums can help you get involved with trending ICOs. It’s the supporters responsibility to research the validity of the ICO. 21st money only shares verified and rated ICO offerings. We feel compelled to help our subscribers receive the best information available.


Most ICOs will have a website where you can purchase the offering. Because of the expectation of new regulations ‘Know Your Customer’ (KYC) rules may apply to your purchase.


Technological advancements are growing at an exponential rate. The playbook has not yet been written in the growth cycles of cryptocurrency since it is driven by the advances in technology and not the GDP of a nation. We have all been eyewitnesses to the growth of this product. And I feel in all probability we will all be an eyewitness to more growth in this sector. This technology is still in its infancy. Don’t let these remarkable investment opportunities pass you by.

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