Explain the Concept of ‘Initial Coin Offering’ (ICO)

An Initial Coin Offering (ICO) is a fundraising method used by cryptocurrency startups to raise capital. In an ICO, a company sells a new cryptocurrency token to early investors in exchange for established cryptocurrencies like Bitcoin or Ether.

It is analogous to an Initial Public Offering (IPO) in traditional finance, but without the stringent regulatory requirements. ICOs were a popular, but often risky, way for projects to bootstrap development and create a community.