Like a start up

ICO stands for "initial coin offering," and refers to the creation and sale of digital tokens.

In an ICO, a project creates a certain amount of a digital token and sells it to the public, usually in exchange for other cryptocurrencies such as bitcoin or ether.

The public could be interested in the tokens on offer for either or both of the following reasons:

1) The token has an inherent benefit – it grants the holder access to a service, a say in an outcome or a share in the project's earnings.

2) The benefit will be in increasing demand, which will push up the market price of the token.

Tokens, especially those of successful sales, are usually listed on exchanges, where initial buyers can sell their holdings and new buyers can come in at any time.

As a type of digital crowdfunding, token sales enable startups not only to raise funds without giving up equity, but also to bootstrap the project's adoption by incentivizing its use by token holders.

Buyers can benefit from both the access to the service that the token confers, and from its success through appreciation of the token's price. These gains can be realized at any time (usually) by selling the tokens on an exchange. Or, buyers can show their increasing enthusiasm for the idea by purchasing more tokens in the market.