Blockchain technology brought rapid and revolutionary changes in the
way how businesses accumulate capital, especially through Initial Coin
Offerings (ICOs). The study examines the dynamics of blockchain-basedbased
crowdfunding and evaluates its effectiveness compared to traditional
funding mechanisms such as Venture Capital, Angel Investment and Bank
Loans. By taking advantage of decentralized systems, ICOs provide global
access to capital, reduce the cost of funding, and perform fast execution.
However, they face challenges related to regulatory uncertainty, security
weaknesses and investor protection. The paper underlines the structure and
functioning of the ICO – including the use of tokens, smart contracts and
whitepapers – and contrary them with traditional methods in terms of access,
speed, transparency, compliance and investor engagement. The study of the
real -world case exposes both successful and fraud ICOs, providing valuable
lessons for stakeholders. The regulatory landscape is investigated in major
courts like the United States, Switzerland, Singapore and India with a
comparative approach. Emerging models are also discussed in Crowdfunding
in Safety Token Offerings (STOS), Early Exchange Offerings (IEOS), and
DeFi (Decentralized Finance), NFTs, and DAOS. The study concludes that
while ICOS present important opportunities, a hybrid model integrating the
trust mechanism of traditional finance with blockchain innovation may define
the future of entrepreneurial funds.