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 and potentially profit if the token's value increases after its launch. ICOs are similar to traditional initial public offerings (IPOs) but operate in the cryptocurrency space. They are often used to fund the development of blockchain-based applications or platforms. However, ICOs can be risky, as they are less regulated and may involve scams or failed projects.