A growing number of tech start-ups are attracting capital through initial coin offerings (ICOs), a crowdfunding arrangement in which companies issue their own digital money to fund projects under development. In this incisive and highly accessible article, financial journalist Nathaniel Popper explains the ICO process and identifies the risks people take in making these idiosyncratic investments. While never giving investment advice, getAbstract nonetheless recommends this worthwhile read to entrepreneurs, investors and anyone interested in how ICOs work.
In this summary, you will learn
- What initial coin offerings (ICOs) are, and how they work,
- Why some companies may prefer ICOs to traditional financing methods, and
- What potential risks this new funding resource creates.
About the Author
Nathaniel Popper writes about finance and technology for The New York Times.