ICOs are method of financing that is

ICOs allow companies to fund the development of their blockchain-leveraged services through the sale of tokens, which guarantee coin holders the right to participate in and benefit from the blockchain. Tokens are offered and sold to investors in exchange for legal tender or other cryptocurrencies.

Explanation:

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ICOs are smart contracts based on blockchain technology that are designed for entrepreneurs to raise external finance by issuing tokens without an intermediary. Unlike existing mechanisms for early-stage finance, tokens potentially provide investors with rapid opportunities thanks to liquid trading platforms.May 21, 2020

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