What is Initial Coin Offering (ICO)?

Initial coin offering (ICO) is a unregulated means of crowdfunding via use of cryptocurrency, which can be a source of capital for startup or young companies. In an ICO, a portion of the newly issued cryptocurrency is offered in exchange to fiat currency or base cryptocurrency to backers of the project or investors. In other words, An Initial Coin Offering (ICO) is used by startups to bypass the meticulous and monitored capital-raising process required by venture capitalists or banks.