What it is
An Initial Coin Offering (ICO) is a crowdfunding event where a blockchain project raises capital by offering its newly issued digital tokens to the public. These tokens often represent a utility within the project's ecosystem or a share in its future success. Investors typically purchase these tokens using established cryptocurrencies like Ether or Bitcoin, or sometimes fiat currency, hoping for future appreciation.
ICOs gained significant popularity in 2017, enabling many projects to bootstrap development without traditional venture capital. However, the lack of regulation also led to numerous scams and projects failing to deliver, prompting increased scrutiny from regulators globally. Today, ICOs are less common, often replaced by more regulated fundraising methods like token sales on launchpads, but they remain a historical benchmark for crypto fundraising.
Why it matters
ICOs were a foundational fundraising model for many crypto projects, and understanding them helps in comprehending market history and regulatory developments.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice