Initial Coin Offerings
The term ICO stands for “Initial Coin Offering” and is a form of corporate or project financing based on blockchain technology. The purpose of the ICO is to raising capital for a company or project by means of crowdfunding. A company issues its own proprietary virtual currency in the form of Coins or Tokens. These Coins can be bought by investors using another currency, either fiat or virtual. An ICO is sometimes refered to as a Coin sale or Token sale.
Increased scrutiny by financial regulators has made ICOs more difficult to manage causing a decrease in popularity as a form of project financing.