Oops! You might be thinking what is an ICO or IEOS and STOs? Let us try to explain and compare three widespread methods so that you can assess them before taking their advantages.
If you are a crypto enthusiast, you might know about ICO. But newbies, are you wondering what is an ICO? An Initial Coin Offering or Initial Currency Offering (ICO) is a crowd fundraising tool specially meant for blockchain startups. Startups issue coins or crypto tokens in crypto marketplaces to raise funds which are usually exchanged with crypto coins. Any individual or organization can become an investor by having a sufficient number of Bitcoins and Ether in any project.
How does ICO work? Firstly, before launching the ICO, the project developers or teams want to raise funds. Issue a document called a white paper. In which the objective of their project, essential details of the team, mission, and vision of the same should be clarified. This should also be highlighted. Benefits for investors.
Then, initially, the coins are given to investors interested in the project in exchange for crypto coins (usually BTC and ETH). If the project becomes legit, the coins get listed on an exchange. Opens doors for business. But the risk is real in the present scenario. Because many projects are short-lived and meant to dupe investors. But, if you research the project carefully. So you can invest in a real working project and make huge profits. There are currently many websites like Icobench, Coincodex, Coinschedule, Cryptoslate, etc. available to help you choose from several ICOs.
If you are exploring the options to invest in a new project, you may have encountered STO. Did you search for what is STO or Security Token Offering? Similar to ICO, STO is also a fundraising method in the crypto marketplace. In the case of STO, cryptocurrency or token representing a security contract is offered to investors. Security is a kind of investment product (which can be stocks, bonds, funds, or Real Estate Investment Trusts(REITs) backed by the assets of the real world. Thus, the security token signifies the information of ownership of the investment product recorded on the blockchain.
There is a significant difference between tokens and coins issued in ICO or IEOS and STOs respectively. The coin is not backed by underlying assets while the token is fungible and backed by the assets of the real world of the company, thereby less likely to be involved in faking the projects. Also, some of the sites like STO Check, STO market, STO analytics, etc, are committed to providing the best overview of the reliable STOs all across the world.
So here we respond- What is IEO for our investors, which they might be expecting us after ICO or IEOS and STOs. An Initial Exchange Offering or IEO is defined by the exchange's platform on behalf of the startups who are looking up to raise the funds for their project with their newly issued coins. The token sale is conducted on the platform of a cryptocurrency exchange after the token issuer pays the listing fees along with a percentage of tokens that are needed to be sold. Issuers have to create accounts on the exchange and investors fund the exchange wallets with coins to purchase the newly issued tokens. Various platforms are available to conduct CEOs like Binance Launchpad, Huobi Prime, OKEx Jumpstart, Coineal Launchpad, and many more.
Is it the battle of ICO vs STO or IEO vs ICO or ICO vs IEO vs ICO or IEOS and STOs? As in the real world, different people have different requirements, similarly, their choices depend on the kind of investment that suits them best. We can only give you insights into all three methods, but final choices need to be made by you only.
We might conclude that none of them is completely flawless or they are complete flaws. It depends on the needs of investors and the issuer while choosing the fundraising tool.
Thus, in the end, if you are an investor, it's your money, choose judiciously to invest it. And if you are an issuer, then choose wisely which option best suits your needs!!
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