What is the purpose of an Initial Coin Offering (ICO)?

An Initial Coin Offering (ICO) is a form of crowdfunding or capital raising used to generate funds for a specific project, usually in the cryptocurrency or blockchain space. The purpose of ICOs is to allow startups to issue their own digital tokens in exchange for cash, with the tokens representing a stake in the company’s future success and generating profits from appreciation in value. Unlike financing from venture capital firms, ICOs offer a far more democratic way of raising capital, allowing anyone with internet access to participate regardless of background or net worth.