What does the company issuing coins in an ICO have to do with the money?



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Well companies need to raise money through the new fundraising concept called initial coin offering (ICO). ICO is to crypto startups and cryptocurrency what IPO (Initial Public Offering) is to companies and stocks where the first you hold digital coins while the second you own shares. Those coins if ICO was successful and startup commits to its promises and development roadmaps will appreciate in value over time especially after hitting the exchanges and investors will receive good ROI and potentially even dividends, plus they can use their coins to purchase products or services offered by the same startup who fundraised their idea through ICO,
A company or individual issuing coins or tokens have nothing to do with money. People issue coins mainly for two reasons - to test coin and their ability to work on blockchain, or to convert those coins or tokens into viable currency, to raise funds for their project. Another alternative of coin creation is to make a market for it - for gambling or drug purchases, and other uses where the coin could be used as a form of payment instead of fiat currency.
That's exactly right. You got it!
ICO is same as limited share offering to private investors. No different really besides no ownership changes hands during ico.
An ICO is effectively another way to crowdfund .
No. They are few and far between and most of them are already engaged with their own projects or gainfully employed for others' projects. You need help with your ICO? Contact me directly then. Find me on LinkedIn Alex Povolotski
Money raised through and ICO/token sale could be for a variety of reasons such as product development, marketing, expanding the team etc but in any case, this should all be clearly outlined in the company's website/whitepaper/material. The company should be able to state a clear and valid reason why they want to raise money/release a token, how much they plan to raise and what they plan to do with the money. If these answers are not clear, perhaps that is an ICO you should stay away from.