ICOs are selling some bullshit made up coins. You buy these coins. They are valued at what they sell at. If the company goes down the coins essentially become worthless.
It's pretty much like company stock but very 2017.
Sometimes the coins are used by the company's product as currency somehow. So imagine paying to use Facebook in FacebookCoin or whatever. You can pay for ads in ZuckCoin which you get by exchanging $$$ into ZuckCoin. So let's say you put $4,000 into ZuckCoin. Facebook goes down, ZuckCoin is worth nothing because you can't use it anywhere. Nobody would buy it because why would you buy something that's useless.
At least that's how I understand it. I don't know much about crypto.
ICOs are selling some bullshit made up coins. You buy these coins. They are valued at what they sell at. If the company goes down the coins essentially become worthless.
It's pretty much like company stock but very 2017.
Sometimes the coins are used by the company's product as currency somehow. So imagine paying to use Facebook in FacebookCoin or whatever. You can pay for ads in ZuckCoin which you get by exchanging $$$ into ZuckCoin. So let's say you put $4,000 into ZuckCoin. Facebook goes down, ZuckCoin is worth nothing because you can't use it anywhere. Nobody would buy it because why would you buy something that's useless.
At least that's how I understand it. I don't know much about crypto.