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I am new to Ethereum blockchain. I have queries regarding ICO(Initial Coin Offering) plateform. I understood basic meaning of ICO.

Suppose I have own startup company. I needs funds for development of company. So, First I create my own ethereum crypto-currency and release ERC20 based tokens on ICO crowd sale. Who buy ERC20 token he gives me crypto money. I used this to develop my company. In this case I have two query.

First Query:-

When Investors come on ICO crowd sale. He buy my ERC20 tokens. What and How he use tokens??

Second Query:-

When I got funds to investors. I got funds in form of ether cryptocurrency. So, How I use this cryptocurrency to development of company. How I will convert ether cryptocurrency to Rupee or Usd

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When Investors come on ICO crowd sale. He buy my ERC20 tokens. What and How he use tokens??

  1. If your crowdsale or your company or your product is a huge success it raises the value of the token. In that case the user can sell them, trade them to make a good fortune out of it.

  2. Suppose in your product you made your token as a payment method for the service, the users can use their tokens to get your service.

When I got funds to investors. I got funds in form of ether cryptocurrency. So, How I use this cryptocurrency to development of company. How I will convert ether cryptocurrency to Rupee or Usd

  1. You need funds to help you build your product. You can directly buy required things, pay your staffs with the cryptocurrency if that is possible.
  2. Or, you can sell your ethers for fiat currency (Rupees or USD) to those who want to buy ethers or use some trading sites to trade.

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