Companies create a new virtual coin or token, which is then sold online to investors in the ICO in exchange for cryptocurrency or fiat currency.
source https://www.google.com/url?rct=j&sa=t&url=https://www.inforum.com/news/crime-and-courts/4512367-cease-and-desist-orders-issued-against-three-cryptocurrency-companies&ct=ga&cd=CAIyGmM2Nzk3ODA2ZWViNjVjODI6Y29tOmVuOlVT&usg=AFQjCNEoeh6L_LZ8k9ID8tP4D4YVHlP8OQ
