Initial Coin Offerings (ICOs) represent a new trend in early-stage fundraising, allowing companies to raise money online without traditional meetings with investors.

An ICO, or Initial Coin Offering, is a fundraising method where a company issues tokens to raise money for the development of a new network and to ensure early distribution of those tokens.

The demand for ICOs indicates a strong interest in investing in startups, but it also reflects a tendency for investors to believe in ideas that may not be sound.

Investors struggle to conduct due diligence in the ICO space due to a lack of established norms and data on token success rates, making it difficult to assess which tokens are viable.

Unlike penny stocks, many ICO tokens lack a concrete basis for their value, making it challenging for investors to understand what they represent.

Investors often rush into ICOs with the hope of quick returns, which can inflate the amount of capital flowing into the space beyond reasonable limits.

The ICO craze brought significant attention to blockchain projects, highlighting the potential for raising substantial funds and driving innovation in the space.

The YC process for evaluating startups provides valuable data on success signals, but such a framework does not currently exist for ICO tokens, leading to aggressive investment mentalities.

The ICO market is currently a global phenomenon, with significant fundraising occurring in both Europe and the United States, reflecting the rapid growth of the cryptocurrency ecosystem.