Initial Coin Offering (ICO)

An Initial Coin Offering (ICO), is a fundraising mechanism (like crowdfunding) used by startups or projects in the cryptocurrency and blockchain space.

In an ICO, a company creates and sells digital tokens to investors or backers in exchange for cryptocurrency like bitcoin or Ethereum, or sometimes even fiat currency. These tokens typically represent some form of utility or ownership in the project or platform being developed. ICOs gained popularity as a way for blockchain startups to raise capital quickly and efficiently without the regulatory hurdles associated with traditional fundraising methods like initial public offerings (IPOs). However, they have also been subject to scrutiny due to their potential for fraud and lack of investor protections. Many countries have implemented regulations or guidelines for ICOs to protect investors and prevent fraudulent activities.