ICO (Initial Coin Offering)
A crowdfunding method where a project sells a new token to the public to raise capital.
In an ICO, a team issues a new token and sells it — usually for bitcoin or ether — to fund development, often before any product exists. The model echoes an IPO but skips the regulation and the investor protections.
ICOs exploded in 2017, raising billions on little more than a whitepaper. Plenty were outright scams, and the SEC later ruled many were unregistered securities sales. The mania faded by 2019, and safer-sounding formats like the IEO and IDO took its place.
Related terms
A digital asset issued on top of an existing blockchain, usually through a smart contract rather than its own network.
TokenomicsThe economic design of a token — its supply, distribution, and incentives — that shapes whether it can hold value.
Security TokenA token representing a regulated investment — equity, debt, or a share of profits — and subject to securities law.
AirdropA free distribution of tokens to wallets, often to reward early users or bootstrap a new community.