What is ICO?

An ICO (Initial Coin Offering) is a fundraising method where projects sell tokens directly to the public, typically in exchange for ETH or BTC. ICOs dominated 2017-2018 before regulatory crackdowns.How ICOs worked:Whitepaper: Project publishes vision and tokenomicsSale: Public sends ETH/BTC to smart contractDistribution: Tokens sent to participantsListing: Tokens trade on exchangesThe ICO boom: In 2017-2018, ICOs raised over $20 billion. Many were scams or failures. The SEC eventually declared most ICO tokens securities, leading to enforcement actions.Evolution: ICOs evolved into IEOs (exchange-based), IDOs (DEX-based), and regulated STOs (security tokens) to address regulatory concerns.The 2017 boom and its aftermath: During the ICO mania of 2017, nearly anyone could publish a whitepaper and raise millions within hours. Studies estimate that over 80% of ICO projects from that era were scams or failed to deliver. The regulatory backlash was swift: the SEC issued enforcement actions, China and South Korea banned ICOs outright, and many countries introduced registration requirements. Since then, token launches have matured considerably. Modern projects typically use launchpads with vetting processes, comply with KYC and AML rules, and implement vesting schedules that align team incentives with long-term success rather than quick cash grabs.