Initial Coin Offering (ICO) Definition - Glossary

Initial Coin Offering (ICO) is a crowdfunding method for new cryptocurrencies where investors buy tokens to support development.

Initial Coin Offering (ICO) is a fundraising mechanism used by startups in the cryptocurrency space. Companies create and sell their own digital tokens in exchange for established cryptocurrencies like Bitcoin or Ethereum, or even fiat currency. These tokens may represent future utility on a platform or a stake in the company. ICOs provide an opportunity for investors to engage early, potentially reaping significant rewards. However, they also carry risks due to regulatory uncertainties and market volatility. ICOs have been instrumental in the rapid growth of the cryptocurrency ecosystem.