Definition: ICO

(Initial Coin Offering) The fundraising event for a cryptocurrency and other blockchain-based offerings. Also called an IPCO (Initial Public Coin Offering), an ICO is a type of crowdsale that issues tokens with a value determined by the founding organization, and that value fluctuates on the market. See blockchain.

A Lot of Scamming
Cryptocurrency ICOs are infamous for being nothing more than a scam that generates a lot of hype with the founder cashing out at the opportune time. In 2017, China placed a temporary ban on ICOs and while the U.S., Canada, U.K. and other countries have stated that ICO tokens might qualify as securities that should be regulated like an IPO stock offering. As yet they are not. Even Switzerland, the most ICO-friendly country in the world (an area around Zug is called Crypto Valley), has issued warnings.

Also in 2017, more than $100,000 was raised for the "Useless Ethereum Token" ICO that clearly states the tokens are worthless (see below). The website guarantees that the value of the tokens cannot go down because they are already worth nothing.

Since the advent of ICOs, three other forms of crypto fundraising emerged (see crypto fundraising). See Ethereum, crowdsale and crypto glossary.

"Seriously, don't buy these tokens."

Excerpted from the home page of the Useless Ethereum Token website, this is perhaps the only honest ICO scam on the market. At least this offering is truthful, and a lot of people likely bought tokens just for fun.