The concept of Initial Coin Offerings (ICOs) began in 2012 with the invention of Mastercoin (now called Omni) by J.R. Willett. In 2013, he initiated an ICO, raising USD$500,000 in Bitcoin, offering a new way for projects to raise funds through a decentralized and transparent approach. In contrast to traditional Initial Public Offerings (IPOs), ICOs allowed businesses to gather capital without forfeiting ownership and with reduced regulations.
The success of Mastercoin’s ICO led to the rise of ICOs in the blockchain and cryptocurrency industries, with Ethereum conducting its own ICO in 2014. However, the surge in ICOs also attracted scammers and drew the attention of regulators. Although there have been challenges, ICOs have significantly contributed to the growth of the cryptocurrency ecosystem and impacted how blockchain projects obtain funding.
