An Initial Coin Offering (ICO) is a fundraising method used by startups to raise capital for new cryptocurrency projects. In an ICO, a company sells a new digital token or coin to investors in exchange for established cryptocurrencies like Bitcoin or Ethereum. This process allows investors to support the project early on, hoping that the value of the tokens will increase as the project develops. ICOs are similar to traditional stock market initial public offerings (IPOs), but instead of shares, investors receive tokens that may provide access to a product or service. However, ICOs can be risky, as they are often unregulated and may involve scams or failed projects, making it essential for investors to conduct thorough research before participating.