Similar to an IPO (Initial Public Offering) in share trading, an ICO provides an opportunity for people to get involved and invest in a project before it hits exchanges.
It is a means of crowdfunding a project in the cryptocurrency space.
The ICO provides the project or start-up company a source of capital.
The benefits of an ICO include the avoidance of costs associated with regulatory compliance and intermediaries such as venture capitalists, banks and stock exchanges.