Than ICO different from IPO? Understand the aspects
Source:
The New technology of cryptocurrencies has brought us a new investment option – the initial placement of tokens (ICO). So if you have some money to invest, you can choose a well-known company for financing through a classic IPO or to support some of the young startups on ICO. What to choose and what really is the difference?
the First and main difference: an IPO is usually done by companies with experience, whereas ICO – young and risky. If to illustrate with a metaphor, an IPO is a 40-year-old owner of the company-manufacturer of garden machinery and ICO 18-year-old computer nerd that collects your supercomputer in my dad's garage.
The first is the famous, profitable business, convincing a Bank account and a positive business reputation. The second none of the above no – he may be the new . And perhaps after a year, his bright idea will be forgotten.
Whether you Prefer to invest in young and unknown computer genius or a respectable businessman in his middle ages? The intention is the same: the hope that the business will grow and with it will grow your profit.
Let's look at the differences between them.
theproject Requirements
Source: Unsplash
IPO
There are a number of requirements that must be performed by the company before the offering of its shares for sale through an IPO. Including the requirement for a minimum income threshold and good performance. Traditional emission during IPO can be a long process because of the inherent legal delays and checks on compliance. Another requirement is that the prospect. The prospectus is a legal Declaration of intention to issue shares to the public and shall include key information about the company and the impending IPO. It is necessary that potential investors could make an informed decision. the Thus, for IPO need lawyers, banks, and patience.
ICO
Because the ICO is not required to adhere to any regulatory framework or legal Protocol, most of the projects there is no record, but their project only reinforced wallpapera.
The duration of the ICO process much less. Typically, a project ICO publishes Wallpaper, but here, in contrast to IPOs, there is no formatting standards. Also keep in mind that in some countries such a document has no legal force. the Get ICO for need programmers and the Internet. All.
theRequirements for investors
Source: Unsplash
IPO
If you invest in a company from your country, it's all quite simple. If you invest in a foreign company, usually there is an additional legal procedure, so it is likely dobavka need to use a broker.
ICO
This is the best part. The only thing needed to access to the Internet. You can buy any tokens of any company from any country. The exceptions are some American projects, defined as securities. These projects are inaccessible to US citizens, otherwise they would have had statements in the spirit of the IPO. And this would go against the very essence of ICO.
theUtility (investors)
Source: Unsplash
Suppose both types of investors are lucky and the investment was profitable. What do you get?
IPO
Shares acquired through an IPO represents a right to a share of the future earnings of the company. Shareholders receive annually depending on the progress of the company during the year. Another way to earn is to invest at an early stage and to sell stocks when their costs increase.
ICO
The main thing to remember is that coins do not give rights of ownership of the project. To invest in tokens there are many ways to obtain future benefits, depending on how the coins are structured. We can talk about a fixed price at which you can buy or sell; on the payment that you will receive if the company earns more than a certain amount; or of the right at any time to come to the office and lunch in its dining room. Whatever it is, it is prescribed in wallpapere project.
thedoes this Mean that the IPO ICO safer?
So it might seem, but actually it is not. All documents related to the audits and legal requirements, the company can still go bankrupt and your investment will burn. On the other hand, if you choose a promising project ICO, this can be a very profitable investment with a much smaller bureaucracy. In both cases, it is strongly recommended to carefully study all available sources to ensure that the project is worth your money.
theICO and IPO – pros and cons
More data to search for .
Recommended
the long-awaited summer. Niche cryptocurrency supported the event and gave unusually hot week. During the last seven days, we learned about the new line of graphics cards from AMD, the mining in TON and hard forks . In addition dealt with the profita...
Co-owner Bitcoin.org Coinbase Pro ridiculed and called a stock exchange Scam
co-Owner Bitcoin.org and most popular forum about cryptocurrency Bitcointalk.org Cobra called Coinbase Scam Pro trading platform American crypto currency exchange Coinbase. In his tweet he wrote «if you read Coinbase Pro backwards, get the word ...
The Ethereum is a cryptocurrency Scam. A new report Chainalysis
When people learned how to create a new cryptocurrency and began to build their infrastructure like marketplaces, in the field began to appear and fraud. According to blockchain auditor Chainalysis for the past two years, fraud in the ecosystem has s...
Related News
VEB and the Grozny mayor's office transferred the housing sector on the blockchain
In February, the first Deputy Chairman of VTB Olga Dergunova positively the prospects of the blockchain. According to her, the technology will improve the speed of transactions and security standards. To move from words to action ...
Hacker 1337. How to hack Etherscan not to cause any harm
Monday on the website Etherscan.io appeared a pop-up message with the numbers 1337. The visitors began to panic and spread rumors about hacking Explorer. really hacked, but the damage from a hacker attack was zero. About it writes...
Expert: Bitcoin is the cure that everyone needs
the Author of the popular book «The Bitcoin Standard» Sayfiddin Ammos claims that will remain with us forever. According to him, the use of cryptocurrency in the future will be compulsory and she has no other alternative...
My Tretyakov: a new blockchain project from the Tretyakov gallery. What is it?
Tretyakov gallery began work on a blockchain project My Tretyakov, in cooperation with the integrator of digital technologies RDI.Digital. According to representatives, a platform designed for crowdfunding program to digitize the ...
Who "knocks" Bitcoin? Knows chief strategist Coinshares
In captainvalor jaw dropped when Bitcoin and ripple has updated annual minima. Although the sudden collapse of the market promised for several months, for many investors, Bitcoin drop below 5800 dollars have been the trigger to se...
Hardwork Bitcoin Cash has taken place. What is known at the moment?
Today was hardwork Bitcoin Cash, who shared the cryptocurrency network on two competing versions of Bitcoin ABC (BCHABC) and SV (BCHSV). The separation occurred at 18:00 UTC (21:00 Moscow time), blackany BCHABC and BCHSV separated...
The IMF will release its own digital currency? The Opinion Of Christine Lagarde
Managing Director and chair Christine Lagarde said at a Fintech Festival in Singapore about the benefits and risks that digital currency poses to Central banks. According to her, money is a volatile substance that is capable of ta...
Some more: Bitcoin has come to an end of the bearish cycle
This capitulation the end of the fiasco. The End Of Bitcoin. Final sale. Indeed, the typical investor in the cryptocurrency right now is suffering huge losses. However, look at the long-term movement of price the main of a digital...
Dive to the bottom: what will happen to the price of Ethereum this month?
recently, analysts at Susquehanna have come to the conclusion that the mining of Ethereum more . All because of the price drop ETH from 1400 to $ 175. Minus the cost of electricity one video card now produces almost nothing. Corre...
Mining in 2019 will be profitable or die?
mining is dead now for sure! Or still will live? Once again understand the situation with mining cryptocurrency, this time will help the team . Discuss the issue simple and understandable words. Exactly as written . the What facto...
How to monitor all indicators of cryptocurrency at the same time? The Answer Coindesk
How to measure digital asset? It would seem, just look at its price, but no, all is not so simple. The profitability and prospects of altcoins is largely dependent on a range of factors. To allow users to review them all, Coindesk...
This is important: what you need to do in a day, the hard forks of Bitcoin Cash
the Most controversial hardwork in the history of Bitcoin Cash will occur today. The result will be the separation of the original blockchain Bitcoin Cash into two chains: ABC Bitcoin and Bitcoin SV. The activation time for hard f...
When waiting for the industrial implementation of the blockchain? The Answer Herman Gref
the Head of Sberbank noted once again that the situation around new technology has subsided. Now the blockchain has passed the stage of industrial development. In his opinion, the mass adoption of the technology and its applicatio...
Eternal bullrun: how much profit brings Bitcoin every day?
Despite a bear market in 2018, still makes a profit long-term investors. It turns out that long-distance main cryptocurrency can enrich you on 0,347% on the day. To such conclusion experts of the company Clavestone. They even deve...
McAfee Labs: the Russians created a virus WebCobra, which mines Monero on gadgets
the Developer of solutions for Internet security and research laboratory McAfee Labs uncovered details about a new malware. According to representatives, the virus enters the device and user . The roots of the growing threat from ...
Bitcoin has updated the annual minimum. Who is to blame for the market crash?
Today will be remembered for a long time. Even at lunch, the market capitalization of cryptocurrencies was 209 billion dollars, and in the evening figure unexpectedly dipped to 187 billion. Bitcoin was designed to peak 5765 dollar...
Bitcoin just fell 10 percent. What is the reason?
This day is over for the stock market is a very sharp drop of Bitcoin and almost all other coins. For a couple of hours the main cryptocurrency dropped by more than $ 500. The total market capitalization has fallen below $ 200 bil...
Nvidia predicts good revenue in the third quarter, but what about mining?
November 15, American manufacturer Nvidia must submit a report on the third quarter. Experts of the research firm Trefis predict an increase in sales of graphics processors at the end of the third quarter of 2018. In Trefis also n...
FAQ: ERC-20 tokens and why do they need
technical basis of virtually all of today's stock market. After its invention almost everyone can bring to the industry something new thanks to the simplicity ERC-20 tokens. But how actually they work? Today we have prepared a se...
Broken farm: the profitability of mining Ethereum has fallen to almost zero
mining cryptocurrency is not what it was before. According to CNBC, the profitability of mining coins with GPU mining has dropped to almost zero. As an example, journalists lead the Ethereum, saying that to get the second capitali...
Comments (0)
This article has no comment, be the first!