Initial Offering

Definition ∞ An initial offering represents the first sale of a new digital asset or token to the public. This process aims to raise capital for a project or protocol development. Participants exchange established cryptocurrencies for the newly issued tokens. It serves as a primary mechanism for bootstrapping new blockchain initiatives and distributing project governance or utility.
Context ∞ Initial offerings, such as Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs), remain a frequent topic in crypto news, often accompanied by discussions of regulatory compliance and investor protection. The success or failure of these offerings often dictates a project’s future viability. Evolving legal frameworks worldwide seek to define and regulate these fundraising methods more precisely.