An initial coin offering (ICO) is a means of raising money via crowdfunding using cryptocurrency as capital. A company raising money through an ICO holds a fundraising campaign. During this campaign, backers will purchase a percentage of a new cryptocurrency (called a “token” or “coin”), often using another cryptocurrency like bitcoin to make the purchase, in the hopes that the new cryptocurrency grows in value.
ICOs were prominent between 2016 and 2018 as a way for crypto projects to raise capital by selling tokens to the public. Following widespread fraud, regulatory crackdowns — particularly from the US Securities and Exchange Commission (SEC) — and the broader crypto market collapse, ICOs have largely disappeared as a mainstream funding mechanism. Founders exploring blockchain-related fundraising today are more likely to encounter regulated alternatives such as Security Token Offerings (STOs) or direct token sales on compliant platforms. This entry is kept for reference, as you may encounter the term in older funding documentation or investor discussions.
An initial coin offering (ICO) is a means of raising money via crowdfunding using cryptocurrency as capital. A company raising money through an ICO holds a fundraising campaign. During this campaign, backers will purchase a percentage of a new cryptocurrency (called a “token” or “coin”), often using another cryptocurrency like bitcoin to make the purchase, in the hopes that the new cryptocurrency grows in value.
