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2016: The Year Blockchain ICOs Disrupted Venture Capital

January 9, 2017

Source: CoinDesk
 

You may have missed it in 2016, but initial coin offerings, or ICOs, have become the dominant way to fund new cryptocurrency projects.

In an ICO, a project sells part of the total token supply to early adopters in exchange for money with which to progress.
 

ICOs have two primary benefits: they provide funding to the team to see the project through, and incentivize a community to contribute (who gain if the project succeeds and the tokens are worth more than they bought them for).
 

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