On the lines of IPO of shares and securities, ICO offers a crypto coin or token in return for investment. IPOs are listed on recognised exchanges, and are governed by regulations. ICOs have no regulatory monitoring.

In 2013, Master coin raised capital to create Bitcoin Exchange which is a platform for Bitcoin transactions.

Out of funds raised through ICOs, part of the funds are lost or are stolen through hacks. And then there are fake ICOs which are promoted on social media with endorsements of celebrities. There are free coin offers and Ponzi scheme links. At times, a card is offered for transactions on the lines of Visa Card or Master Card.

Till the proper regulation is enforced, extreme caution is needed while dealing in the dodgy coin.