Abstract: Initial Coin Offering (ICO) is considered as a fundraising tool. Any start up can create a cryptocurrency or digital token using various platforms. One of the platforms is Ethereum which provides a toolkit for companies to create new digital tokens. The companies will then do a public ICO where the investors can buy the newly mined Tokens. The number of ICOs and capital raised substantially since 2017. Funding the beneficial and innovative ventures is a prime topic in the entrepreneurial finance. The innovative ventures that use distributed ledger technology(DLT) are supported by ICOs. The most common DLT is the Blockchain Technology. ICO is also referred as “Token Sale” or “Crowd Sale”. In ICO, companies issue tokens and then sell them to the crowd of investors. ICO is similar to crowdfunding but the differential quality is the use of DLT which is the center to these tokens and is required for the issuing of the tokens. Blockchain Technology is a revolutionary, innovative and disruptive technology. Thus, funding this domain using ICO is of great interest to the entrepreneurial finance. This study is about literature on entrepreneurial finance by the introduction to ICO.
This Technical review will be done on an individual level and the review will discuss in detail how introduction to ICO can benefit new ventures and also how ICOs are proving beneficial for innovations and its challenges to implement in the finance industry. We will compare different platforms for putting forward the ICO. We will also see how an ICO can affect the growth of the company and its profits.
| DOI: 10.17148/IJARCCE.2022.11924