Many blockchain companies are using a largely unregulated means of raising funds, commonly known as an initial coin offering (ICO).[1] An ICO consists of the issuance of a newly generated cryptocurrency (generally referred to as a token) that runs on blockchain technology, in exchange for fiat currency (such as U.S. dollars) or other cryptocurrencies like bitcoin or ethereum. Broadly, tokens can either be classified as “utility tokens,” which provide users with access to the blockchain platform developed by the issuer or products or services provided by the issuer, or “security tokens,” which represent certain rights with respect to an entity, either as equity or debt.[2] This GT Alert discusses the potential tax implications of the so-called utility tokens.