Let's take another example. This is me and my small company named Organic Cosmetics.

In 2017, I thought of making an ICO. Imagine that I created a coin name COS.

For every customer who buy from me 1 USD value in products, I give them 1 COS in giftdrop paper wallet. 1 COS = 0.01 USD. This is only initial value or ICO value.

Ie. You buy Organic Cosmetics for 1000 USD, you have 1000 COS, which is equal to 10 USD. The giftdrop COS paper wallet is like coupons.

The customer can take the COS coins from the giftdrop paper wallet they recieve and accumulate it. Or they can come back to me, exchange for cash or use COS to buy my cosmetics.

Eventually, COS becomes my system's cryptocurrency. My company is the exchange of COS coin. My customers are the community. They can mine COS with me to make it decentralized. The COS I gave them in giftdrop campaign was only from my pre-mined coins.

One day, I list COS on other public exchanges to spread out the community, as well as my business. I also stop the giftdrop campaign and let the market Demand-Supply decide the COS price.