ICOs (Initial Coin Offerings) are a method of raising funds in the cryptocurrency industry where companies issue tokens on a blockchain to investors in exchange for financial contributions. These tokens may represent ownership or give access to a product or service within the project. ICOs offer a way for startups to quickly raise capital and allow investors to support emerging projects, but they also carry risks, including fraud and lack of regulation.
ICOs first emerged in 2013, with Ethereum’s ICO in 2014 marking a major milestone. While they provide high potential returns, they are also highly speculative and often unregulated, making it important for investors to do thorough research before participating. As ICOs continue to grow, understanding the risks and rewards is essential for anyone considering involvement.
