An ICO (Initial Coin Offering) is a form of crowdfunding, typically conducted via cryptocurrency, where companies issue digital tokens or coins to investors in exchange for a financial contribution. It is essentially like an Initial Public Offering (IPO), but instead of buying shares in a company, investors in an ICO purchase tokens that are typically used to access a product or service provided by the issuer. By raising capital through an ICO, companies are able to bypass the more rigorous and regulated fundraising process required by venture capital firms or banks.