What is an initial coin offering (ICO)?

An initial coin offering (ICO) is a type of crowdfunding or fund raising activity, in which a company or individual raises capital by offering digital tokens and coins for sale. The tokens are issued using blockchain technology and represent an investment in the underlying project or asset, which may include digital currencies, products, services, and other assets. The tokens may be designed to provide the holder with certain profit sharing rights or ownership of a stake in the issuing entity.