What is Initial Coin Offering (ICO)?

Initial Coin Offerings (ICOs) or token sales are a mechanism made possible by blockchain technology that incorporates the creation and sale of a token or coin to raise funds for a new crypto protocol, decentralized application (dApp), or other digital asset or blockchain product. Instead of providing buyers with equity or shares, an ICO sells coins/tokens that usually claim future utility in the associated project. Despite this, ICO-launched coins/tokens may still be considered securities, and are subject to jurisdictional regulation in certain countries.