An ICO (Initial Coin Offering) is a fundraising method used by crypto projects to raise capital by selling their own tokens to investors before or during project launch.
How it works:
1. Token Sale:
A project creates a new token and sells it to early investors, usually in exchange for crypto like ETH or BTC.
2. Purpose:
Funds raised are used to develop the project — like building apps, networks, or infrastructure.
3. Public or Private:
Some ICOs are open to anyone, while others have private sales for selected investors.
Why it's important:
- Gives early access to tokens, often at lower prices.
- Supports innovation by funding new blockchain ideas.
Risks:
- ICOs are mostly unregulated — some turn out to be scams.
- No guaranteed returns or finished product at the time of sale.
