An ICO, or Initial Coin Offering, is a form of crowdfunding that uses cryptocurrency in exchange for investment from buyers. It works by issuing tokenized assets to buyers interested in investing in the product or service being offered. Typically, these tokens are purchased with cryptocurrencies, such as Bitcoin or Ethereum, and buyers then receive the tokens to use on the platform or product being offered. ICOs provide the opportunity for a company to raise funds to develop their product or service without having to rely on traditional methods of financing such as venture capital or angel investors.