The term ICO (Initial Coin Offering) is everywhere these days. It’s nearly impossible to read anything about blockchain and cryptocurrencies and not come across it.

Insane fundraising events like Tezos’ US $232 million token sale or Filecoin’s US $257 million have popularized the model in the press. However, despite their glorious rise even companies like Tezos have been hit with lawsuits for securities fraud due to shifting regulations and it’s unclear if investors who felt they were misinformed during the ICO will ever be refunded.

Tezos isn’t alone. Blockchain startup teams are raising millions of dollars at the very earliest proof-of-concept phase based on potential and hype rather than traction, team and product market fit.

This decentralized access to capital is fueling the rise of blockchain applications in a massive way. But this increased popularity is also revealing ways the model needs to evolve.

Related: 5 Signs an Initial Coin Offering Is a Scam ICO stands for Initial Coin Offering. It’s a fundraising event — sometimes called a crowdsale, token generation event or token sale — where a company releases its own cryptocurrency with the intention of raising capital to fund the development of a project and validate community interest as it’s being developed. Read more from…

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