Post
Topic
Board Altcoin Discussion
Merits 1 from 1 user
Topic OP
How do crypto projects get funding?
by
Teratai93
on 28/08/2021, 06:28:34 UTC
⭐ Merited by Roman_Picisan (1)
ICO
The most well-known form of crypto is Initial Coin Offering (ICO). An ICO is a place where a project is created to raise funds by selling their own crypto asset tokens.

Basically, each token is a block chain that is similar to or equal to a share in a stock that is open to the general public - so you can make a comparison that an ICO is another variation of an Initial Public Offering (IPO).

Crypto projects can also raise funds through a Security Token Offering (STO), Initial Exchange Offering (IEO) or Initial Dex Offering (IDO).

STO
STOs are slightly different from ICOs. Securities tokens represent investment contracts that are the subject matter of investment assets, such as stocks, bonds, funds, and real estate investment trusts (REITs). Securities tokens have many advantages because financial regulators regard them as securities. The high level of security makes it very popular among investors.

IEO
IEO (Initial Exchange Offering) is an alternative to ICO where project tokens are sold directly through a crypto asset exchange. Unlike ICOs, IEOs are not open to the general public and any user wishing to purchase the token must do so through an Exchange account.

IDOC
IDO (Initial Decentralized Offering) is very similar to IEO, but IDO is on a decentralized Exchange.


or is there another way?