The acronym ICO stands for Initial Coin Offering. An ICO is a widely used strategy of crowdinvesting to generate funds for new blockchain projects.
During an ICO, newly issued cryptocurrencies are typically sold to investors in exchange for fiat currencies or other cryptocurrencies.
In the past, there have been repeated cases of so-called exit scams, in which the project founders made off with the collected capital without providing anything in return. For this reason, new investors should always research thoroughly and weigh up the risks before investing money in new cryptocurrency projects.