An Initial Coin Offering (ICO) is a method for fundraising in the cryptocurrency space. It involves issuing a new cryptocurrency token to investors in exchange for their investment, usually in the form of another cryptocurrency like Bitcoin or Ethereum. ICOs are commonly used by blockchain-based projects to raise capital for development.
- ICO participants receive tokens in exchange for funds.
- Tokens can represent equity or future access to a product.
- Regulatory scrutiny varies by jurisdiction.
ICOs allow projects to raise funds quickly but also come with risks, including scams or project failure. Therefore, it's essential to conduct thorough research before participating.