# Initial Coin Offering (ICO) see also **[[Initial Token Offering (ITO)]]** 1. A [[Blockchain|blockchain]]-based fund-raising mechanism in which entrepreneurs mint new crypto-[[Token(s)|tokens]] and sell them to investors. 3. A fundraising method in which new projects will sell their [[Crypto (cryptocurrency)|cryptocurrency]] to investors. 4. Is an event in which a new cryptocurrency sells advance tokens from its overall [[Coinbase Field|coinbase]], in exchange for upfront capital. ICOs are frequently used for developers of a new [[Crypto (cryptocurrency)|cryptocurrency]] to raise capital. 5. An unregulated means by which a [[Crypto (cryptocurrency)|cryptocurrency]] venture, typically early stage, can raise money from supporters by issuing tokens. It is often referred to as a crowdsale as ICO participants may potentially earn a return on their investments (as opposed to crowdfunding, where supporters donate money to a project or cause). [[Ethereum (blockchain)]] is currently the most popular platform for launching ICOs. 6. An Initial Coin Offering is somewhat similar to an IPO in the non-crypto world. Startups issue their own [[Token(s)|token]] in exchange for ether or [[Bitcoin (blockchain)]]. This is essentially crowdfunding in exchange for a token. 7. A public, crowdfunded sale of [[Crypto (cryptocurrency)|cryptocurrency]] tokens to raise money for a project. Typically, company-specific [[Token(s)|tokens]] are offered in exchange for [[Bitcoin (blockchain)]] and [[Ethereum (blockchain)]]. 8. The form in which capital is raised to fund new cryptocurrency ventures. Modeled after an Initial public offering (IPO). Founders of an ICO receive [[Token(s)|tokens]]. 9. ICOs are types of crowdfunding mechanisms conducted on the [[Blockchain|blockchain]]. An ICO is an event in which a new cryptocurrency sells advance tokens from its overall [[Coinbase (mining reward, transaction)|coinbase]], in exchange for upfront capital. ICOs are frequently used for developers of a new [[Crypto (cryptocurrency)|cryptocurrency]] to raise capital. The way it works is entrepreneurs present a whitepaper describing the business model and the technical specifications of a project before the ICO. They lay out a timeline for the project and set a target budget where they describe the future funds spending (marketing, R&D, etc.) as well as coin distribution (how many coins are they going to keep for themselves, token supply, etc.). During the crowdfunding campaign, investors purchase [[Token(s)|tokens]] with already established cryptocurrencies like [[Bitcoin (blockchain)]] and [[Ethereum (blockchain)]]. 10. A [[Blockchain|blockchain]]-based fundraising mechanism in which entrepreneurs mint new crypto [[Token(s)|tokens]] and sell them to investors. 11. Another way to originate [[Token(s)|tokens]] for a [[Blockchain|blockchain]]. An ICO involves a marketing process, private sale, then a public sale of a newly-listed token, which then aims to be listed on as many [[Cryptocurrency Exchange|cryptocurrency exchange]]s as possible. Note that there is no standard way of conducting initial coin offerings.