ICO & Token Sale - The Difference

in cryprocurrency •  last month


Featured Image.png

ICO assists you in raising funds for your business or idea through crowdsale of Cryptocurrencies, whereas in Token Sale you build a smart contract on the Blockchain in order to generate and sell your own cryptocurrencies.

Also read: What is ICO – Everything You Need To Know

Let us dig in further and differentiate between Initial Coin Offering and Token Sale.

line.PNG

ICO Vs Token Sale


line.PNG

The Initial Coin Offering has had enabled many entrepreneurs to raise funds for their idea or a running business. Most of the time it is the idea that does ICO, whereas professional investors can leverage Token Sales in order to finance that business or idea. It is observed that the companies doing ICOs are mostly technology based. These companies issue coins that can be very profitable for risk takers who believe in do or die situation. Which means you can make a lot more or exactly nothing. There is higher risk involved in ICOs but let us forget that provided you have faith in the founders and the idea that it will definitely work, maybe not at start but ultimately it will.

Regulations.png

As compared to ICOs, the Tokens Sales are more legally governed. There are only few countries that have regulated ICOs working, while all the other have unregulated ICOs. In essence, the legally bounded companies are more likely to succeed in contrast with unregulated entities. Your money is safe them.

Also Read: Here’s How You Launch Your ICO

In addition, most of the funded entities are either ideas or MVPs, and few are those that have records of accomplishment. If you have a great feasible product with a relevant team, then it is likely that VC Firms will buy your tokens. These firms have their own methods; they receive funds from their investors and invest in selective token sales, and hold them until the tokens have sufficient value. Afterwards, the tokens are sold and profits are distributed among investors.

The Investment.png

The most important difference in ICO Vs Token sale is that through ICO you raise funds from a crowd of people that are willing to risk their money; though, in token sales, you get to meet professional financers that are usually required for a large sum of investment, unlike ICOs that starts with as low as 1.000 €. The investment raised through ICOs is used for operating expenditure, whereas token sales funding are used to accumulate capital for investments. As for profits, token buyers and ICO investors are both at advantage. They can sell off during an unusual hype of increased prices, in order to earn a small and a quick profit. However, keep this in mind that the evaluation of Tokens grow gradually as compared to ICOs. It develops gradually and can potentially bring in higher profits than ICOs. Which means you should hold your tokens during a surge.

Summary.png

ICOs are for those who are after smaller and quicker profits, and Token are for those that can wait until their seed grows into a full tree, and help them earn huge profits. Moreover, the Token investment is more secure and regulated than ICO. When you invest in any of them, make sure you are not in urgent need of that money you invested, since it is a big risk, which rarely proves successful but when it does, it can turn the tables around. Therefore, the VC Business Models should think of adopting token in order to keep up with the growing technology.

break2.png

Let us know in the comment section about your choice. Did you go for ICO or Tokens? And let us know your reasons for going either way. That will help everyone understand the essence of both of them.

break2.png

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Steemin-comment-header.png

Congratulations🎉, You received a upvote👍 from @Atombot - Steemin Community Bot. Thank you for using our bot🤖 and Joined our Steemin Server.


If you want to learn about steemit and want to upvotes. Just Join our Steemin Community 👇

leftside arrow Steemin rightside arrow

👉 Delegation to the Atombot 👈

1 SP | 5 SP | 10 SP | 15 SP | 20 SP | 50 SP | 100 SP | Custom SP

Steemin-comment-footer.png

#kryptonia

·

Congratulations @atombot ! You received a 10.75% upvote from @kryptoniabot & @kryptonia for your task of 300 SUP Today.

Remember to receive votes from @kryptoniabot

Run a task on Kryptonia.*Join free here Kryptonia Account
Use the tags KRYPTONIA or SUPERIORCOIN in your Steemit post.

Delegate to the Kryptonia Upvote by clicking links: 10SP , 50SP , 100SP , 500SP , 1000SP

Due to an increased amount of tasks, we have changed up the voting power to evenly spread out the Upvote amount.

thank you for writing the differences in detail, great job

·

Thank you very much for your kind support my friend @mike949

Posted using Partiko Android

This post has received a 10.47 % upvote from @boomerang.

Nice informative blog buddy ..

Posted using Partiko Android

sneaky-ninja-sword-xs.jpg
Sneaky Ninja Attack! You have just been defended with a 8.33% upvote!
I was summoned by @flash07. I have done their bidding and now I will vanish...

woosh
A portion of the proceeds from your bid was used in support of youarehope and tarc.

Abuse Policy
Rules
How to use Sneaky Ninja
How it works
Victim of grumpycat?

Congratulations @flash07! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of upvotes received

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

You can upvote this notification to help all Steemit users. Learn why here!

At first I thought this 2 are same things 😅😅

Thank you for such a great information & easy explanation. Waiting for your next article.

I see you explained types of ICO (I didn't know about it either). I think you should post about tokens type now so everyone get better idea. At least I will have better idea 😅

Thanks again for such a great information. I always learn something new from your articles. Good work @flash07 👍👍

Posted using Partiko Android

·

Happy to here that you liked it @techbuzz07

see you explained types of ICO (I didn't know about it either). I think you should post about tokens type now so everyone get better idea. At least I will have better idea 😅

I was thinking about the same. Thank You for your suggestion.

Thank You for your kind support.

excellent post dear friend @ flash07, very clear in the differentiations.
Thank you very much for sharing this information
I wish you a great day

·

Thank You very much my friend @jlufer. I am glad that you found this article informative.

Very informative. Great article.

ICO assists you in raising funds for your business or idea through crowdsale of Cryptocurrencies, whereas in Token Sale you build a smart contract on the Blockchain in order to generate and sell your own cryptocurrencies.

The investment raised through ICOs is used for operating expenditure, whereas token sales funding are used to accumulate capital for investments.

These are the two points I find easy and worth keeping in mind as the difference, the others look a bit confusing. Thumbs up for head up!

·

These are the two points I find easy and worth keeping in mind as the difference

Thank you for sharing your views.

the others look a bit confusing. Thumbs up for head up!

Tried to write as simple as I can 😅

Thank you for your kind support my friend.

thank you for presenting this useful article
even though I often make articles about ico but don't understand what the ico cycle really is

·

I am glad that you liked it my friend @rumayani. I made ICO related articles in past too if you like to check & in coming weeks will do more. Hope I will get continuous support from you.

Have a great day.

dhairya my friend .., you really make my decision right
that i m following u on steemauto since ur repu was around 30

·

Thank You for your kind support @jigsindian.

Well describe bro. Good work

·

Thank you my friend.

Posted using Partiko Android

Very nice article for recognise the difference.

·

Thank you for your kind support @rosy1606

Posted using Partiko Android

My first ICO was the BeerCoin. I bought some BeerCoins during the ICO.

The other coins I got I bought on Cryptopia. And I keep them, use PoS and gain some extra coins.

And when the market gets back up, I will sell them.

·

My first ICO was the BeerCoin. I bought some BeerCoins during the ICO.

I didn't hear about it honestly. But hope you got great profit from it.

The other coins I got I bought on Cryptopia. And I keep them, use PoS and gain some extra coins.
And when the market gets back up, I will sell them.

Good luck with that my friend.

Thank You for your kind comment and support @hasenmann.

·
·

Thank you for your answer.
I think there is a huge difference between INVESTING and TRADING.

And everybody has to think about that FIRST.

You´re welcome.

·
·
·

I think there is a huge difference between INVESTING and TRADING.

Agree with you my friend @hasenmann

Great article @flash07. I really liked the way you have mentioned everything. I learn so much from you. Thank you again for such a nice information.

Posted using Partiko Android

·

Thank You @pratik99 for your kind support.

·

Thank you my friend

Posted using Partiko Android

You got a 43.17% upvote from @joeparys! Thank you for your support of our services. To continue your support, please follow and delegate Steem power to @joeparys for daily steem and steem dollar payouts!

Hi @flash07 you always have this evaluation that dwells on precision, when the issue surrounds ICOs.

ICOs are for those who are after smaller and quicker profits, and Token are for those that can wait until their seed grows into a full tree, and help them earn huge profits.
for me this is the analogy that has got me tripping,when differentiating them two
·

for me this is the analogy that has got me tripping,when differentiating them two

You have eyes to caught most important part :)

Thank You for your kind comment and support my friend.

Congratulations @flash07! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

Award for the number of comments received

Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

SteemFest³ - SteemitBoard support the Travel Reimbursement Fund.

You can upvote this notification to help all Steemit users. Learn why here!

ICO is a concept that we tend to handle on a daily basis and many times we have a vague idea of what its definition is. Thanks for clarify it. Excellent post.

·

Thank You for your kind comment and support my friend @jadams2k18.

I believe crypto market this time totally manuplate and people don't want to invest for a longer duration they just want to trade for a short term period so yes ico is for those who wanted to sell there coins at the time listing and token for those who wants to keep it for long duration.

·

I believe crypto market this time totally manuplate and people don't want to invest for a longer duration they just want to trade for a short term period so yes ico is for those who wanted to sell there coins at the time listing and token for those who wants to keep it for long duration.

Agree with you my friend. Thank You for your kind support @cryptomoneymntra.

Quite weird that I've been using these words interchangeably . Thanks for this buddy ! Resteeming so that others can learn :)

·

Resteeming so that others can learn :)

Thank You for such a great support my friend @danielwrites.

Nice comparison! So would this also mean, so we should also expect that ico tokens are much more easily tradable , since they distribution is much broader as is the chance of listing on exchanges?

·

@conceptskip

Nice comparison!

Thank You my friend.

So would this also mean, so we should also expect that ico tokens are much more easily tradable , since they distribution is much broader as is the chance of listing on exchanges?

These condition fulfills for sure if project has good potential. Listing on exchange is not big issue now a days because there are so many exchanges opening now a days which are listing tokens which even beginner will say no. But as I said if project is good, team is amazing and they really want to put some value in blockchain then there will be no issue :)

Hope I understood your query right and give you satisfactory answer.

Awww... Nice one here again. But it pains I am just getting to reel this after 10 days of posting.

This articles explains a lot in a succinct way the major distinguishing factors between ICO and token sales.

Much more knowledge is added to my crypto horizon, thanks to you @flash07.
I pray I am not late to show up on your next posts.

·

www... Nice one here again. But it pains I am just getting to reel this after 10 days of posting.

Time dosen't matter my friend. What matter is your honest review and valuable comments.

This articles explains a lot in a succinct way the major distinguishing factors between ICO and token sales.
Much more knowledge is added to my crypto horizon, thanks to you @flash07.

Thank You for such a nice comment and your kind support my friend..

·
·

Thanks bro!

Great article :)

·

Thank You for your kind support my friend @freecrypto.

Its amazing how frequently these terms are used in the media with such little explanation.

·

I am glad you liked it my friend @machnbirdsparo.
Thank You for your kind support.

This is a very nice and informative article @flash07. I have to admit, I haven't been able to distinguish between them before now. I always thought they might mean the same thing seeing as tokens are at the center of the whole distribution process. Now I know better. Thanks for your enlightenment.

I didn't know the difference, I must confess. Duely noted now. I see it's more affordable for me to participate in ICOs than Tokensales, although riskier.

·

I am glad that you found article useful my friend @ced000.