When Ether token (ETH) was launched back in 2014, one ETH was sold for around ₹25.18
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In today’s article, we will discuss the definition of altcoins along with the concept of initial coin offering (ICOs).
Alt Coins are actually an abbreviation for alternative coins. Coins other than bitcoin such as Ethereum (ETH), Solana (SOL), Polygon (MATIC), Ripple (XRP), etc are commonly referred to as altcoins. Although Bitcoin is the most well known and valuable of the lot, it does have some downsides and these alt coins usually try to represent a better or different version of Bitcoin such as faster transactions or provide more privacy to the users.
One of the distinctive downsides of an alt coin is, many of them are relatively unknown and there are only a few exchanges and wallets that support them, making them harder to buy. Until today, thousands of coins have been introduced, however only a few seem to have gained popularity over the course of years.
What is an ICO?
ICO stands for initial coin offering. Most of us might be familiar with the traditional finance term “IPO”, which denotes Initial Public Offering and ICO is basically similar to it in the coin universe. An IPO is used to describe the launch of a company on a stock exchange, also commonly referred to as “going public”. The purpose of the IPO is to raise capital for the company by selling the stocks of the company to the public.
On the other hand, ICOs sell coins known as tokens as a way to fund a specific project. The general idea is, if the project is believed to succeed, we buy the tokens to fund the project beforehand at a discount, and we will be able to sell them later at a profit, when the project…
