Questions about ICOs

I’ve heard a lot about companies selling digital coins to investors to raise money. Many cryptocurrencies have no underlying value, do coins from ICOs represent anything such as ownership in the company or credit towards merchandise?

Nope, you just give cash and get coins. Early buyers (investor doesnt seem quite right here) are hoping the value of the coins go up.

What can you do with the coins if the value doesn’t go up?

Lose money

The same thing you can do with them if the value does go up; find someone who will accept them in exchange for goods or currency.