I've only looked at this thing in passing. Here's my take of it. Bitcoin is too hard to come by. You have to spend money and electricity to mine it. So peop

I've only looked at this thing in passing. Here's my take of it. Bitcoin is too hard to come by. You have to spend money and electricity to mine it. So people are thinking, hey, why don't we create a new crypto coin, ShiningCoin, using the available crypto infrastructure, like Ethereum. And let's set aside 1 million ShiningCoin as the initial coins, before mining the rest. Voila, we just got 1 million coins without spending the money and effort to mine them! Ok, let's offer 100,000 of those initial ShiningCoin to investors to fund our development effort to build up ShiningCoin, promising them with huge growth in ShiningCoin value ahead; everyone knows crypto currency only goes up, right? We'll ask investors to pay 1 Bitcoin for 1 ShiningCoin. We then got 100,000 Bitcoins (or 100K X $4000/bc = $400 millions) at the Initial Coin Offering. Yeah, we're rich! That's basically how ICO works.