
Initial Coin Offerings (ICOs)
An Initial Coin Offering (ICO) is a way for new cryptocurrency projects to raise funding. Developers create a new digital token and sell it to investors in exchange for established cryptocurrencies like Bitcoin or Ethereum, or sometimes fiat money. Investors buy these tokens with the hope that the project will succeed, increasing the token's value. ICOs are similar to initial stock offerings but for digital assets—providing an early opportunity to support innovative blockchain ventures. However, they carry risks, as not all projects succeed, and regulatory oversight varies.