ICO (Initial Coin Offering)

An Initial Coin Offering (ICO) is a fundraising method used by new cryptocurrency projects to raise capital. Investors buy digital tokens or coins with existing currency like dollars or cryptocurrencies, hoping the project succeeds and the tokens increase in value. ICOs are similar to traditional startup funding through stock sales but involve blockchain technology and digital tokens instead of shares. They allow startups to raise money quickly and reach a global audience, but they also carry risks since the projects are often unproven and regulators may have limited oversight.