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What Are The Differences Between An IPO and ICO?

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Differences between an IPO and ICO

They are remarkably different. In the case of an IPO, the issuer company provides shares of ownership to investors in the company, this is not necessarily the case with an ICO. In an ICO (usually) custom Tokens are developed as a key part of the business model of the company making the offering. The issued Tokens can serve several purposes, depending on the company’s business model. Tokens can be used to provide voting powers in the issuing company and may be assigned ownership rights. The Tokens are used to provide intelligent value added services that also have value and can be bought and sold.

ICOs are made for early-stage businesses at this point.

IPOs are heavily regulated by the SEC, and are suited to companies that are far more developed and more established.

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