Initial Coin Offering (ICO)

Initial Coin Offering (ICO) or Initial Currency Offering is a funding system used by companies operating in the cryptocurrency space. A company launches the ICO inviting investors to provide funding with fiat currency or other cryptocurrencies. In exchange for their support, investors will receive a new cryptocurrency token specific to the ICO which they will be able to sell in the future after they have hopefully increased in value. ICOs are used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks, but have also been the vehicle for scams.