ITPEC FE Morning October 2021 Question 73
ITPEC FE Morning October 2021 — Question 73 of 80
An Initial Coin Offering (ICO) is a fundraising method used primarily by startups that issue and sell cryptocurrency tokens to investors. It is the crypto equivalent of an IPO but typically unregulated and blockchain-based.
Why not others:
- (a) Describes crowdfunding (e.g., Kickstarter) — backers contribute money and receive physical rewards or products, not tokens.
- (b) Describes a mature company raising capital (closer to IPO or bond issuance) — ICOs are specifically associated with startups, not financially stable corporations.
- (d) This is the definition of an IPO (Initial Public Offering) — offering shares of a private corporation on a stock exchange.
Key rule: ICO = startup + cryptocurrency tokens; IPO = established company + stock shares; Crowdfunding = backers + physical rewards.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official FE past-paper collection or Report an issue.