ICOs (Initial Coin Offerings)

An Initial Coin Offering (ICO) is a way for developers to raise funds for a new cryptocurrency project. Investors buy digital tokens, usually using established cryptocurrencies like Bitcoin or Ethereum, in hopes that the project will succeed and the tokens will increase in value. Think of it as a crowdfunding method specific to digital assets. ICOs can offer quick access to capital but carry significant risks, including lack of regulation and the potential for scams. They are part of the broader cryptocurrency ecosystem, enabling innovation but requiring careful evaluation by investors.