An equity token offering (ETO) refers to the process of raising capital by issuing tokens that represent ownership in a company or project. It is a form of crowdfunding conducted through blockchain technology and is commonly associated with initial coin offerings (ICOs) or security token offerings (STOs).

Unlike traditional fundraising methods where shares are issued, an ETO allows companies to tokenize their ownership stakes. These equity tokens represent ownership rights, such as voting rights and entitlement to profits, similar to traditional equity shares.

ETO campaigns typically involve the issuance and sale of these equity tokens to investors in exchange for cryptocurrencies or fiat currencies. The tokens are usually issued on a blockchain platform, ensuring transparency, traceability, and potential liquidity through secondary markets.

The use of equity tokens in fundraising offers several advantages. It opens up investment opportunities to a global audience, reduces barriers to entry for investors, enhances liquidity, and simplifies compliance through smart contracts and regulatory frameworks.

However, it's important to note that ETOs may be subject to regulatory requirements depending on the jurisdiction. It's crucial for companies and investors to navigate legal and compliance aspects when engaging in equity token offerings.