ICO
An ICO is a token sale where a crypto project raises funds by selling newly created tokens to early supporters.
An ICO, or initial coin offering, is a fundraising method used by blockchain projects to sell newly issued tokens before or during a project launch. Buyers typically pay with cryptocurrency, such as ether or bitcoin, and receive tokens that may later be used in the project’s app, network, or ecosystem. ICOs became popular because they allowed teams to reach a global pool of supporters without using traditional venture capital or public stock markets.
ICOs matter because they helped shape how crypto projects bootstrap communities and distribute tokens, but they also carry significant risks. A token sold in an ICO may not represent ownership in a company, may have limited utility, and may lose value or never become usable if the project fails. For example, an ICO can be compared to a crowdfunding campaign where backers receive digital tokens instead of a product preorder or company shares, though legal treatment varies by jurisdiction.
Other terms in Tokenomics & Launches
Airdrop
A token distribution method where a project sends free tokens to users, often to reward early activity or broaden ownership.
Cliff (Vesting)
A cliff is the initial waiting period in a vesting schedule before any allocated tokens can be unlocked or claimed.
Emission Schedule
A plan that defines how and when new tokens are created, released, or unlocked into circulation.
Fair Launch
A token launch model that aims to give the public equal initial access, with no special early allocations for insiders or private investors.