Glossary
Definition
ICO (Initial Coin Offering)
A fundraising mechanism in which a company issues cryptocurrency tokens.
An Initial Coin Offering (ICO) is a fundraising mechanism used by cryptocurrency projects in which digital tokens are sold to investors. ICOs were extremely popular in 2017–2018 but were associated with widespread fraud. Most jurisdictions have since implemented regulations requiring that token sales comply with securities laws.
Frequently Asked Questions
Are ICOs still common?
ICO activity declined sharply after 2018 regulatory crackdowns and fraud cases. The market shifted toward regulated token sales and alternative structures such as IEOs (exchange-based) and STOs (security token offerings).