Ever wondered how new crypto projects get funding before they become big?
That’s where an ICO, or Initial Coin Offering, comes in.
💡 What Is an ICO?
An ICO (Initial Coin Offering) is a way for crypto startups to raise money from the public by selling a portion of their newly created cryptocurrency to early supporters or investors, usually in exchange for BTC, ETH, or stablecoins like USDT.
It works like crowdfunding, but instead of giving you a T-shirt or early product access, you get crypto tokens that may increase in value if the project succeeds.
🧠 Why Use ICOs?
Crypto companies use ICOs to:
🚀 Raise funds without going to banks or VCs
🧱 Build community early on
⚒️ Fund the development of their blockchain projects
⚠️ Important Note for Beginners:
ICOs are not regulated in most countries.
Some turn out to be scams or fail.
Always Do Your Research before investing.
🧠 Simple Analogy:
Think of an ICO as buying shares in a startup, except instead of stock, you receive digital tokens with potential future use or value.
📚 References:
Binance Academy – What Is an ICO?
Investopedia – Initial Coin Offering (ICO) Definition
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