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A new cryptocurrency startup can raise money through an initial coin offering (ICO), in which it offers some of its tokens to early supporters in exchange for funding.

Similar to an Initial Public Offering (IPO) on the stock market, investors purchase tokens that represent a stake in the project instead of acquiring the company’s shares. Startup initiatives in the blockchain and crypto sectors frequently use ICOs to acquire capital for the development and launch of their projects.

An ICO’s success is mostly influenced by the demand for the tokens, the project’s capacity to raise the necessary funds, and the project’s long-term viability.