Initial Coin Offering
A crowdfunding method where a project sells tokens before a product is built.
A crowdfunding method where a project sells tokens before a product is built.
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Sep 2026 · Freshness Score: 50%
Was ist Initial Coin Offering?
A crowdfunding method where a project sells tokens before a product is built.
- Category
- concept
- Type
- Authority Node
- Quellen
- 1
A project publishes a whitepaper and sells tokens via a smart contract at a fixed price or in rounds. Contributors send crypto and receive project tokens. Proceeds fund development. ICOs were largely unregulated, which led to scams and regu
ICOs democratized access to early-stage investment but became synonymous with fraud and regulatory failure — most 2017 ICOs failed and many were securities violations. Their legacy shapes today's fundraising norms, securities classification
Wissensgraph
20 relations1. What Is an Initial Coin Offering
An initial coin offering (ICO) is a fundraising method where a project sells newly created tokens to the public, often before the product is live, in exchange for crypto (usually ETH or BTC). It was the dominant fundraising model of the 2017 crypto boom.
2. How It Works
A project publishes a whitepaper and sells tokens via a smart contract at a fixed price or in rounds. Contributors send crypto and receive project tokens. Proceeds fund development. ICOs were largely unregulated, which led to scams and regulatory crackdowns; modern successors include IEOs (exchange offerings), IDOs (DEX offerings), and token generation events.
3. Why It Matters
ICOs democratized access to early-stage investment but became synonymous with fraud and regulatory failure — most 2017 ICOs failed and many were securities violations. Their legacy shapes today's fundraising norms, securities classification, and the caution regulators apply to token sales.
4. Key Facts
- Ethereum's 2014 ICO is the iconic early example
- SEC's "Howey Test" applied to ICOs led to enforcement actions
- IEOs/IDOs moved fundraising onto exchanges with vetting
- Most ICO investors lost money — a cautionary tale
5. Related Concepts
- token-sale
- token
- launchpad
- disclosure
Frequently Asked Questions
What is Initial Coin Offering?
A crowdfunding method where a project sells tokens before a product is built.
How does Initial Coin Offering work?
An initial coin offering (ICO) is a fundraising method where a project sells newly created tokens to the public, often before the product is live, in exchange for crypto (usually ETH or BTC). It was the dominant fundraising model of the 2017 crypto boom. A project publishes a whitepaper and sells t
Why does Initial Coin Offering matter in Web3?
- token - launchpad - disclosure