ICO plan full form is Initial Coin Offering. In other words it also called token sales. It is business plan where business owners offer a limited period sale of a predefined number of a crypto tokens to the public, typically in exchange of major crypto currencies mainly bitcoins and ethereum.
ICO market has grown very rapidly during the year of 2016-2017. It has been a major avenue for block chain based start ups and projects to get the funding needed to lunch the project. Before work with ICO plan some issues must be taken of. Like legal documents related to token sales – from the white paper to the token sales agreement-needs to be reviewed to ensure that everything is fine. Government rules and regulations for this business also need to reviewed to protect the rights of token holders and decision making process.
Company owners decide to sell some shares but not with liquid money or traditional selling process. They want to make a network market. Founders or owners decide the token based on company. They also manages the token and all. Then they try to convince investors to buy that token not with money but in exchange of virtual money like bitcoins or ethereum. Investors buy these tokens in exchange of crypto money and get benefited with prize. Owner after taking the virtual money invest into another project.