What Is ICO (Initial Coin Offering)?
Definition
An ICO is a fundraising method where a project sells tokens to early investors before launch — similar to an IPO but for crypto tokens, often with less regulation.
ICOs were the dominant crypto fundraising method in 2017-2018. Projects would create tokens and sell them to the public to fund development. The ICO boom (and subsequent crash) led to increased regulatory scrutiny.
- IDO (Initial DEX Offering) — token sale through a decentralized exchange launchpad
- IEO (Initial Exchange Offering) — token sale through a centralized exchange (Binance Launchpad)
- Fair Launch — no pre-sale. All tokens go to the liquidity pool at launch. Common for memecoins.
- Airdrop — distribute tokens for free to early users or community members
- LBP (Liquidity Bootstrapping Pool) — Dutch auction-style token launch on Balancer
For CoinDevTools token creators, a "fair launch" is the simplest path: 1. Create the token 2. Revoke authorities 3. Add all tokens to a liquidity pool 4. No pre-sale, no private round — everyone buys on the DEX at the same price
Fair launches are increasingly preferred by communities because they eliminate insider advantages.
Related Terms
Tokenomics
Tokenomics is the economic design of a cryptocurrency token — covering supply, distribution, utility, incentive mechanisms, and how these factors affect the token's value over time.
Airdrop
An airdrop is a distribution of cryptocurrency tokens to multiple wallet addresses, typically used to reward early supporters, build community, or achieve decentralized token distribution.
Liquidity Pool
A liquidity pool is a pair of tokens locked in a smart contract that enables decentralized trading on automated market makers (AMMs) like Raydium and Uniswap.
DEX (Decentralized Exchange)
A DEX is a peer-to-peer exchange that enables cryptocurrency trading directly from your wallet without intermediaries, using smart contracts to match trades.