Cryptocurrency Token Sale Terms Explained in Layman Terms

Just like we have IPO (Initial Public Offering) in mainstream investment world. There are token sales in cryptocurrency world as well.

ICO

Stands for Initial Coin Offering, a public offering where user sends funds to particular crypto address given by company and receives the token.

Example: Ethereum, EOS.

IEO

Stands for Initial Exchange Offering. Unlike an ICO, IEO is not open in public, you will have to be user for IEO hosting exchange to buy tokens.

IEOs can be better than ICOs as usually here exchange's reputation is at risk.

Example: Bittorrent IEO on Binance.

STOs

Stands for Security Token Offering.

There are two types of tokens in cryptocurrency world.

1. Utility tokens: Utility tokens can be redeemed for services offered on the platform.

2. Security tokens: Here contributors get security tokens which give right to dividends, shares, equities etc of the platform.

Being security, it is important to comply with the government regulations. Hence STOs are highly popular among long-term investors.

Example: Polymath.

IDO

This is the most recent one, supposedly stands for Initial Dex Offering.

Unlike an IEO (where tokens are sold on centralized exchange), here tokens are sold on DEX platform.

Example: Raven protocol on Binance Dex.

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