ICOs: Why Regulators Worry About and Investors Can’t Get Enough

Initial Coin Offerings (ICOs) and airdrops are two common methods blockchain projects use to raise funds and attract users. ICOs sell tokens to investors, similar to company IPOs, but often without clear regulation, raising both opportunities and risks. Airdrops, on the other hand, distribute free tokens to reward early adopters and boost adoption. Both events are taxable in most jurisdictions, meaning investors must account for income or capital gains when receiving or selling these assets.