A crowdsale is a fundraising method where a new cryptocurrency project offers tokens to the public in exchange for established cryptocurrencies like Bitcoin or Ethereum. This approach allows projects to raise capital for development and marketing.In a typical crowdsale, participants purchase tokens during a set period. The tokens may represent a stake in the project, access to services, or voting rights. Early investors often receive discounts or bonuses.Crowdsales gained popularity due to their lower barrier to entry compared to traditional fundraising methods like initial public offerings (IPOs). They enable a broader audience to support projects and potentially profit if the project succeeds.However, crowdsales also carry risks. Some projects may lack transparency, leading to potential scams or failures. Investors should conduct thorough research before participating, as regulatory scrutiny has increased in many regions. Overall, crowdsales present both opportunities and challenges for innovators and investors alike.