An Initial Coin Offering (ICO) is a fundraising method used to raise capital by selling digital tokens to investors, typically in exchange for cryptocurrencies like Bitcoin or Ethereum. ICOs allow investors to buy tokens before a project launches or becomes fully operational. Tokens may represent utility within a platform or potential future value.
ICOs are often compared to IPOs but are less regulated, which makes them both accessible and risky. While some ICOs have supported innovative projects, others have resulted in scams or failed ventures. Investors should carefully review the whitepaper, team, and roadmap before participating.
Example:
A company raises capital through an initial public offering (IPO) by selling shares to investors.
