Initial coin offerings, more commonly referred to as ICOs, are an innovative fundraising mechanism in which new projects receive Bitcoin and Ethereum in exchange for crypto tokens that get value if the project turns out to be successful.
As you can see from the infographic below provided by BTXchange, this kind of fundraising opens up a lot of new possibilities for startups. However, there's a big stumbling block that often gets brought up whenever discussions about ICOs take place.
Shortly put, ICOs have no regulation in some countries.
In other words, if you live in a country which has not yet introduced any regulations and invest your cryptos into an ICO that turns out to be a fraud, you have nowhere to submit a complaint, let alone get your money back.
However, many feel like the benefits of ICO by far outweigh the problems that plague this fundraising mechanism. For starters, unlike ventur…