# Capital Formation ## Initial Coin Offering (ICO) This is the most common form of raising funds for token networks, and drove the crypto market boom of 2017. ICOs take a variety of shapes, but generally consist of the following: * Someone thinks of an economic system using a fungible cryptocurrency (typically ERC20) * They create a white paper to detail these thoughts and provide credibility * They create a landing page to explain the system and attract investors * They raise money by selling a percentage of the network to a group of private investors (optional) * They launch the token on an exchange, opening the investment opportunity to the public The ICO boom of 2017 brought a ton of hype for the crypto industry, but also allowed for many to take advantage of the situation to raise money on "hopium." ## DAICO This is essentially an ICO whose funds are immediately controlled and managed by a DAO. Many companies tried to do this after the original DAO failed. The success of this design pattern, and the tools required to implement will take more time to fully emerge. {% embed url="" %} ## NFT Sales This is the most common form of fundraising via cryptocurrency for individual artists and brands. It also opens the door to mass adoption in a way that is slightly easier to grasp than fungible fluid token economies provide. DapperLabs is pioneering the way with NBA Top Shots and BeepleCrap has made a significant splash in the art world (see: [**Social Tokens page**](https://square1-hello.gitbook.io/square-1/decentralized-finance/defi-products/broken-reference)). ## DAOs and Multisigs Many DAOs today create ways for communities to pool money together and make decisions in a collective way through key signatures. Some DAOs are simply vaults that require multiple key signatures to manage the funds. Others are voting systems with more complexity (see: [**Decentralized Organizations**](https://square1-hello.gitbook.io/square-1/decentralized-finance/defi-products/broken-reference)).