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ICO
(Initial Coin Offering)
An ICO (Initial Coin Offering) is a crowdfunding method where blockchain projects sell tokens to raise capital, peaking in 2017-2018 ($22B raised). Largely replaced by STOs and IPO-like IDOs due to regulatory crackdowns.
ICOs enabled Ethereum's 2014 raise ($18M at $0.31/ETH), but scams like BitConnect ($2.6B Ponzi) proliferated. The SEC deemed most ICOs unregistered securities (fined Telegram $1.2B). Unlike ETFs, ICO tokens often lacked utility beyond speculation. Post-ICO, projects list on exchanges (e.g., NASDAQ-listed COIN after Coinbase's direct listing). Survivors like Filecoin evolved into functional networks, while 80% of 2017 ICOs failed by 2020.
ICOs enabled Ethereum's 2014 raise ($18M at $0.31/ETH), but scams like BitConnect ($2.6B Ponzi) proliferated. The SEC deemed most ICOs unregistered securities (fined Telegram $1.2B). Unlike ETFs, ICO tokens often lacked utility beyond speculation. Post-ICO, projects list on exchanges (e.g., NASDAQ-listed COIN after Coinbase's direct listing). Survivors like Filecoin evolved into functional networks, while 80% of 2017 ICOs failed by 2020.