The emergence of the reverse ICO -- otherwise known as a reverse initial coin offering (ICO) or token generation event (TGE) -- is a relatively recent phenomenon. It is an alternative fundraising route to the traditional IPO (initial public offering) that takes the form of a token sale to existing or potential users.

A reverse ICO is the concept of a company issuing its own cryptocurrency rather than raising funds with an ICO. The purpose of a reverse ICO is to raise capital, using similar techniques to an ICO, while no longer being required to seek pre-approvals and licenses from regulators. With a reverse ICO, a startup can launch its own cryptocurrency and sell it to the public, allowing the startup to fund its activities.

The key differences between a traditional ICO and a reverse ICO are that existing companies can issue reverse-ICO tokens, allowing them to raise capital to expand operations, and the token does not necessarily give investors equity in the company.

The main aim of a reverse ICO is for a company to raise capital to expand operations and/or to bring blockchain technology into their existing business model. Companies can use these funds to develop software, acquire new users, hire staff, launch marketing campaigns, and more.

Reverse ICOs are attractive to existing businesses because they are no longer subject to the same federal regulations that must be met with a traditional IPO or ICO. Reverse ICOs are also less expensive and take less time to launch than a traditional IPO, so businesses may find the process of raising capital more attractive.

In summary, a reverse ICO can provide existing companies with the opportunity to raise capital quickly, with less regulatory scrutiny than a traditional IPO, and with the potential of bringing new and innovative blockchain technology into the organization. This provides an ideal alternative for existing companies hoping to innovate and expand their operations.