Frequently Asked Questions
An ICO (Initial Coin Offering) is a fundraising method where a project sells its native cryptocurrency/token to early backers in exchange for established cryptocurrencies (like ETH or BTC) or fiat. Investors receive tokens which may be used on the platform or held for speculative value.
- A well-defined whitepaper
- Token smart contract (typically ERC-20 or similar)
- Tokenomics structure (supply, pricing, vesting)
- ICO website/landing page
- KYC/AML compliance process
- ICO dashboard for investors
- Marketing and community strategy
The most common standard is ERC-20 on Ethereum. Alternatives include:
- BEP-20 on BNB Chain
- TRC-20 on Tron
- Solana SPL tokens for Solana-based projects
Choice depends on your use case, community preference, and network fees.
- ICO: Conducted by the project itself on its platform
- IEO (Initial Exchange Offering): Hosted by a centralized exchange
- IDO (Initial DEX Offering): Conducted via a decentralized exchange (DEX)
ICOs offer more control but less immediate liquidity or exposure.
ICOs often face scrutiny under securities laws in jurisdictions like the US, UK, EU, and Asia. Key compliance concerns:
- KYC/AML procedures
- Token classification (utility vs. security)
- Jurisdictional restrictions (e.g., excluding U.S. investors)
Engage legal counsel early.
