What is an ICO and how are they related to cryptocurrencies?

ICO (Initial Coin Offering) is the process of an initial token offering, through which startups raise funding for their projects. Unlike traditional IPOs, where companies issue shares, ICOs use cryptocurrency tokens that are sold to investors in exchange for more well-known digital assets like Bitcoin or Ethereum. These tokens can be used within the project or even sold on cryptocurrency exchanges. ICOs have become an important tool in the cryptocurrency ecosystem, allowing projects to quickly raise capital.