An ICO works the same way as an initial public offering in that it’s a way for a company to raise money from the public. In a typical ICO, which can last anywhere from a few hours to a few weeks, the company invites people to buy tokens (aka digital coins) to fund a project. These projects involve blockchain software such as Ethereum, which runs across multiple computers in order to create a tamper-proof digital ledger. The software can also be programmed to do things like create so-called smart contracts or make investments. To take part in the ICO, supporters of the project send digital money like bitcoin (or in some cases use credit cards) to a website run by the company and then receive digital tokens in return.