An Initial Token Offering (ITO) helps blockchain and cryptocurrency projects raise funds for development by selling their native tokens to early investors or supporters. It is akin to an Initial Public Offering (IPO) in the traditional finance world but is specifically tailored for cryptocurrencies. During an ITO, tokens are typically sold at a lower price to create early investment opportunities, often promising returns in the future as the project gains traction. ITOs have become popular as they allow for direct investment in blockchain projects without the regulatory burdens faced by traditional funding mechanisms.