ICO is a process where a company raises capital in the Blockchain ecosystem. Investors receive crypto coins/tokens in return for their investment. These tokens stand out because they support open-source projects. Investors have rights to a specific project through an initial coin offering (ICO), not the company launching the project. Investors may obtain a decision-making position as a result of decentralised decision-making, which is one of the most distinctive aspects of ICOs. Direct taxation may not apply to the project for which the ICO is held. An ICO is sometimes held to promote the usage of new cryptocurrencies or the marketing of new services.

There are two kinds of ICOs namely, Private ICO and Public ICO. In a Private ICO, a limited number of investors are allowed to participate whereas, in a Public ICO, anyone can become an investor.