An introduction to (ICOs), (STOs), and (IEOs)

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Just like the stock market has IPOs the same concept exists in the crypto market where different offerings are taken upon however because the basics are so dissimilar the way the money is raised is also in terms of blockchain.

Through order to raise capital, a company’s shares are offered to the general public in an initial public offering (IPO). The project raises funds by selling the tokens on the crypto market. This article aims to clarify the key distinctions between various sorts of cryptocurrency offerings.

What are ICO’s

The term “initial coin offering” (ICO) refers to the sale of a cryptocurrency. In return for other crypto currencies or, in some situations, money, newly created projects, and crypto coins are made available to the broader public. Because the cryptocurrency markets are unregulated, there’s a chance that investors will become victims of pump and dump schemes. In 2017, ICOs dominated the market, and there was a lot of buzz about them. According to a report, 80 percent of all ICOs in 2017 were scams, resulting in a significant amount of money being lost by users.

People participate in initial coin offerings (ICOs) in the hopes of purchasing newly minted currencies at a low cost with high market potential.

Some of the platforms that allow people to participate in ICOs are ICOBench, CoinFactory, and CoinGecko.

About STO

The term “Security Token Offering” is an abbreviation for “Security Token Offering.” It’s comparable to an initial coin offering (ICO), but it takes a step further by linking itself to a physical commodity like stocks, real estate, or bonds. Exchange-listed STOs must go through a thorough due diligence process and meet all financial standards. STOs are considered more legitimate than ICOs and have fewer risks of being manipulated.

STOScope and STOKR are two tools to look into if you’re interested in STOs.

About IEO

The initial exchange offering, or IEO, is a type of public offering that takes place on a stock exchange. This is managed by exchange and is only accessible to those who have signed up for that exchange. Although many IEOs on the same project may occur at the same time. IEOs gained popularity after Binance launched its Launchpad towards the end of 2019. Following the completion of the offering. The token issuer pays a listing fee as well as any amount of tokens to be supplied to the exchange in exchange for using the exchange’s services.

Binance, Kucoin, Huobi, and OKEx all allow IEOs

If you want to participate in any of these services or invest, you should be aware of the risks involved. When buying new coins, what should you look for? is a good start.

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