ICO, IEO, & STO: The Future of Asset Management

The continued evolution of cryptocurrency enables the arising of new methods to support blockchain projects. These are fundraising for blockchain-related projects. Here we have cut down the ICO(Initial Coin Offering), IEO(Initial Exchange Offering) & STO(Security Token Offering) definitions and benefits for the industry.

Initial Coin Offering(ICO)

It is a type of crowdfunding using cryptocurrencies for crypto projects in its initial stage. For startups, it can be a source of capital. A person or company can raise funds for any project by selling their crypto tokens to an investor. ICOs gained popularity back in 2017. Investors can gain profits if the raise in token value from the initial price.

Advantages

Disadvantages

IEO

IEO or Initial Exchange Offering is run on and supervised by Cryptocurrency Exchange. It is restricted to members of the exchange. They only can receive tokens. The company sells tokens directly to the exchange. They can then sell them to an individual. It makes it less complex for its users to invest in different crypto coins.

Advantages

Disadvantages

STO

Security Token Offering is similar to the ICO, and it’s also called tokenized IPOs. It is a public sale of security tokens on a crypto exchange. STOs are more complex for fundraising and also it’s more difficult to implement than ICO. On the blockchain, a security token represents the ownership details of the investment product.

Advantages

Disadvantages

ICO, IEO, & STO: The Future of Asset Management

Initial Coin Offering(ICO)

IEO

STO

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