ICOs, or Initial Coin Offerings, are fundraising events in which cryptocurrency tokens are sold in exchange for digital currency, such as Ethereum or Bitcoin. The tokens represent a part of a larger project that is usually related to blockchain technology. Companies will typically use an ICO to raise capital to fund the development of a new project and may offer special pre-sale discounts or bonuses to early contributors. As with any crowdfunding venture, the tokens may appreciate in value over time if the project is successful, allowing investors to reap rewards. ICOs can be seen as a form of investment, although they are also a high-risk undertaking and have been subject to significant regulatory scrutiny.