What is the difference between ICO, IEO, and IPO?
ICO
ICO stands for Initial Coin Offering which is a popular crypto crowdfunding platform to support ventures. It is a crypto token sales platform where people can raise funds by releasing a new token. Here the investors are responsible to pay the assets in terms of any digital currency or fiat currency. For participating in ICO, one needs to create a utility token on any existing blockchain. Many crypto startups raised funds by launching a crypto token using premium ICO script software. Experts in the crypto space say that ICO is an effective way of funding a new crypto token and cryptocurrency in the marketplace.
Advantages of Initial Coin Offering
- Easy to set up
- Completely Decentralized
- Anyone can participate
- High liquidity
- Decentralize the way toward financing innovation
- No intervention of government
IEO
The Initial Exchange Offering is another approach to raise funds that are continuously getting the excitement of ICOs and traders. Here token sales will happen only in the crypto exchange. To participate in IEO, the token owner will send a whitepaper of the project to the admin of the exchange. Once the admin accepts the whitepaper, he/she can conduct the crypto token sales in the exchange platform.
Advantages of Initial Exchange Offering(IEO)
- Comes with regulations, so it is trustable
- It ensures security.
- It requires only KYC/AML from the users
- Tokens are listed immediately in the exchange for trading
- Exchange is responsible for fundraising
IPO
IPO stands for Initial Public Offering which is a kind of open offering where an idea of the business is offered to an institution. The association surrenders a few of its holding to the financial specialists who by then trade it on the stock exchange. IPO is not related to blockchain technology and is about to selling of new issuance of a company shares on the stock market
Advantages of Initial Public Offering
- An extensive and different gathering of speculators to raise capital
- Gives the organization a lower cost of capital
- Increase the organization’s presentation, eminence, and open picture. So IPO can support the organization’s deals and benefits
- Raises the biggest measure of cash for the organization contrasted with different alternatives
