Bitcoin Forum

Hey Guys,

What is the difference between ICO and Token sale? not sure I totally understand it.
Just invested at www.payperex.com . there it is Token sale.

I really appreciate your help!

ICO stands for Initial Coin Offering, which is similar to Initial Public Offering.

IPO is selling securities.

If the coin represents an investment, ownership of other assets, pays dividends, etc., then it is a security. Unless the ICO has filed with the regulators, they are not allowed to sell securities.

Token Sales is selling tokens, preferably to be used in playing games or gambling. They should not represent ownership of other assets, pay dividends, etc.

So, if I invest in an ICO I will get dividend?

No, not necessarily. It depends on the ICO and if they are claiming that they will pay a dividend.

Any ICO that claims that they will pay a dividend or that you will make a profit, you should be very suspicious and cautious for these reasons:

-  Technology startups rarely pay dividends.  Google and Facebook still don't pay dividends.
-  You should thoroughly understand how they will make the money to pay the dividend.
-  If they claim that they will pay dividend or provide a return on investment, then they are selling a security.  In which case, they are putting themselves on the top of the regulator's list, if and when the regulators start cracking down on ICOs for selling securities.  If regulators go after them, then the value of the coin will drop.

So Its ok that I participated in token sale and not ICO?

Difference between ICO and Token Sale ? Actually there is no difference between ICO (Initial coin offer) and Token Sale. Initial coin offer(ICO) is the sale of token at discount price when coin is not listed in the market. A virtual price is set of coin in comparison of ETH and offer is made to sale of coin with bonus coin. there may be benefit or loss in investing ICO. First read the details of the project before investing in the ICO.

 The major difference between ICO and token sales is the "I" initial which happens just once you are one of the first people to get the coins offered if you purchase your coin in ICO. Here  there are no tokens just coins subsequent sales of the coins are tagged tokens .Token sales are sales of the coins that are already available in the market.

I know few projects that issue tokens for the firs time, there is no Coin

ICO is Initial Coin Offering and IPO is Initial Public offering and both have regulators and ICO can't sell securities like IPO. And Tokensale happens after ICO.

The explanation is nice and easy to understand. So far I think ico and tokensale are the same. Now I understand and there is a difference between ico and tokensale. Thanks for the information.

ICO is the short name of "Initial Coin Offering"

IPO is the short name of "Initial Public offering"

If you run an ICO then you can not sell securities like IPO.

So, ICO does the Token sale to raise capital to conduct business.

ICO is a popular form of calling for investment in cryptocurrency projects. In each ICO project, developers will create an event and in the crypto project they will sell a portion of their tokens to their favorite investors in exchange for funding to fund that cryptocurrency project work and develop in the future. The ICO usually takes place before the project is completed and will help fund the founding team's performance until the start of the project.  Token sale is the opening of a Token of an electronic currency during the ICO period, which can be opened in one or more Token sale sessions. In other words, the Token sale is part of an ICO project. I think so :D

Token Sale and ICO can be identical, as both can be selling tokens.  ICOs can sell a new coin from a new blockchain or it can be selling tokens.  Token Sale sells only tokens.  That is really the only difference.  Either can offer dividends, profits, etc.  If either do, then they are selling securities.

The main reason some teams are calling it Token Sale instead of ICO, is because they don't want the perception that they are selling securities, as ICO is very similar to IPO and IPOs sell securities.

I think they are the same. Token sale is a mean to gain money from ICO.

what do you think is more profitable for us to invest, ico or token sale, thanks

Essentially, these are the same bananas. They are referring to the sale of tokens that have just came out in the market. They can also be called crowdsale. Initial Coin Offering or ICO is simply the most used term but it can also be called Initial Token Sale or Offering. Do not be misled by how these are called. These are trivial details, simply incidental. Focus on checking the entire project when investing instead.  

ICO and Token sale are the same thing. ICO is an event created to sell tokens with various bonuses provided. Unlike the case with us to buy coins on the coin exchange.Disini many people involved. ICO Juda can be a place to raise funds from investors.

If you still not understand about ICO and token sale, you can read article in this link below:
https://medium.com/@SingularDTV/whats-the-difference-between-an-ico-and-a-token-launch-7105edbb2112
I hope you can understand about the difference ICO and token sale after you read article above :)

They're one and the same if you ask me. I wonder why people link ico's to ipos, when ico's are nothing close to securities.

A lot of projects are now using the term - Token Generation Event - TGE, and I think that's largely to do with ICO sounding to similar to IPO and the connotations of that

Thanks

Hey, yes this what I did before investing at Payperex. I read the details and I got a feeling that they will deliver. Thanks!

thanks

I am not sure about it, I know few companies doing token sale without ICO

I always buy my tokens from EtherDelta after the ICO and under ICO price. Which leads me to think they are all scam..

Not all ICO are scam, but majority off them. It is your responsibility  to know which one is a legit one. Information is not so hard to find any more. All you have to so is to do some research before investing in ICO.

ICO is a way to crowdfunding find money to projects, and sometimes it is good investing, but u also can fail
Token sale could happen after ICO, or like another event, less profitable and not risky, as i understand

The two are the same.  Initial coins Offering (ICO) is when a startsup want to raise fund to start their project or expand it. They will sale tokens which will eventually become the coins.

There is no as such difference between token sale and ICO. ICO is Initial public offering and token can be defines as the unit we purchase. Just like in IPO we got shares....in ICO we got tokens and after listing in an exchange these tokens is called coins.
So don't worry ICO sale and Token sale both are the same thing.

Thanks!

ICO and Token are one and same thing. You will get tokens in ICO sale. Initial coin offering(ICO) launched by a co. to raise crowdfunding from the public all around the world. It helps entrepreneurs to raise funding for their project. If ICO get overwhelm response than its price increases otherwise will get decrease.

ICO is the process by which you gain tokens by donating money to developers to develop their project. It's simple.

ICO (initial token offering) and token sale are the same.

no difference dude,
ICO is the technical name of token sale, usually during token sale people purchased the new invented coins ticket and then they will used it in different purpose according to ICO .

Ok, thanks

There is , Token sale is for specific use unique ecosystem. ICO is Coin for Coin use

I agree with the description of ICO and IPO but as regards the Tokensales part..  Tokensales is the ICO. Do you mean that Token distribution happens after ICO, i believe that is what you meant.

yes

So far I only understand, if in ICO then the coin or tokens are sold have a cheap price, whereas in token sale there is no special time, so it happens anytime either in the ICO or outside ICO. And the price was hanging right then

The term ICO is often used to describe Ethereum token launches. But coins and tokens are two very different things…

ICO  otherwise called  Initial Coin Offering  is a term created to describe the many bitcoin clones and other “coin” clones that erupted over the years. Bitcoin is basically a distributed ledger that performs best as digital money — a simple example of the power of decentralization. Satoshi Nakamoto’s consensus process is revolutionary! But you can’t build much with it. Ethereum can do what Bitcoin does. It can be digital money too, but unlike Bitcoin, Ethereum is highly programmable — it’s designed to accommodate the construction of complex applications. Bitcoin produces “coins”. Ethereum generates “tokens”. A “Token Launch” is an Ethereum thing. An “ICO” is a bitcoin/altcoin thing.

Coins or Tokens really only have one utility — to act as simple stores of value with limited-to-no other functionality. By “simple” value, I mean value not represented or manifested through a variety of dynamic functions. Tokens are a completely different breed all together. They can store complex, multi-faceted levels of value. Forget everything you know about bitcoin and pre-mined coins and that entire ilk of tech, Ethereum tokens are generated by a Smart Contract System (SCS), are highly programmable and have multi-functionality because of it. They transcend being just a coin, and through their array of functions become something much more — “tokens”. Technically, they are not “offered”, they are “generated”. Probably the most accurate phrase of what’s going on during an Ethereum token launch is to describe it as a “Token Generation Event”, but I’m not sure TGE has the same flare as ICO. Nevertheless, a coin does one thing, and a token can do many things.

I think ICO and Token Sale is 1

Both names can be applied to each other actually. Well, if you want to be very detailed about it, you may replace "token" with "coin" because strictly speaking "coin" and "token" are two different things. But they are used interchangeably just like ICO and token sale. During ICO or Initial Coin Offering, the thing that is being offered to the interested investors are coins or tokens and so I cannot see any difference on the two terms being used. ICO is a more business-like term, perhaps taking from IPO.