Bitcoin Forum

As we all heard about IPO (Initial Public Offering) and ICO (Initial Coin Offering).
Let us discuss the difference between them.
Will ICO take place of IPO in near future??? 

IPO is usually done in conjunction with stock exchange while ICO is done in the cryptocurrency market. As far as I know, no company can launch an IPO without first proving its worth and without passing all the legal requirements set out in the law so as to protect the investors. While in ICO being under an unregulated and decentralized platform anybody can launch an ICO anytime anywhere....a situation opening floodgates to scammers and frauds. When you buy an IPO you are basically buying a stock of the company and therefore entitled for company dividends now the same thing could not be true with ICO otherwise the project can be flagged as selling security and can be against the law. I am then hoping that soon we can see ICO evolving and advancing so that we can weed out scammers and that investors are not only protected but can be earning something out of the money they invested even if the value of the ICO is going down in crypto-exchanges.

No. IPO's are still one of the trusted way of investing of some usual investors and those that are not into crypto's.
They preferred this way of investing.
In other words IPO = shares while ICO = tokens.

Thanks for sharing your views and knowledge. How about the technology behind ICO, do renowned companies or business houses adopt it???
Do they offer ICO instead of IPO by following rules and regulations???
Yes unregulated form of ICO put investors in danger and also future of this new technology as well.

In my opinion, it seems that companies are going for ICO'S since they have no obligation to their investors after the tokens/coins have been distributed.

eg. gaming companies used ICO as a cash cow, i did look for updates from those icos back then and it turns out the coins/tokens are already dead, 0 trading volume.

Ipos often have more onerous rules and face a better regulatory system.
However, the ICO now faces little regulation, so any team can issue an ICO at will.

Probably will but it needs get some laws and rules getting accepted to make ICOs legal.  Right now that is not the case in most if not all countries in the world. ICO organizers create securities and claim they are not securities but an utility tokens or even crypto currencies or many other names.

Note that this is only my opinion. IPOs are regulated by the SEC and listed companies are not likely there to scam you..On the other hand, ICOs are unregulated and could end up not doing what they promised aka vaporware and noone can go after them.. This all depends on the project and team behind them. Luckily, with Menlo One, we won't need to exert too much effort in researching which project is good or bad since their incentive system does the research for us via contribution reviews/ratings from the community...

Agree, ico has nothing to do with shares, at least most of them are so. Initial coin offering is not regulated well yet as well.

It seems to me that ICO is already outdated, this IPO is the best option for today. In the future, ICO will die completely.

There are ICOs that offer almost the same way of earning through their tokens like IPO does.
I don't have experience and IPO's and if my understanding isn't perfect with it.
There are dividend tokens that are also sharing profit to their holders.

There were rumors that Stock market are going to adopt Blockchain which might really happen in the future. If it does happen, then IPO will be replaced by  ICO or some team call it TEC (token exchange). Once there will be a regulatory board monitoring the cryptocurrency they might be able to chose which to call it. They might merge everything including the penny stocks.

I think that the main the biggest difference between them is that IPO is more regulated. It is not easy to create IPO. But it is so easy to create ICO and you dont need any license from government.

ICO is still very different in IPO. IPO is supported by the physical industry, but ICO is just a concept, and ICO feels closer to crowdfunding.So I don't think ICO will replace IPO, but IPOs may face the need for new forms in the future.

I am longing for the time when the market can be as strict (or even a certain percentage of it) as IPO but using the technology behind enjoyed by ICO and where people can easily access them. I am not good in predicting but I think with the way things are developing we are going into this route. The technology is already here so it is just a matter of adoption and tweaking to make it appropriate and acceptable to the regulators, the investors and project proponents. I am for regulation in order to protect investors but not for the purpose of constricting innovations...there is a need to balance the two in today's environment. There must be a way to weed out scammers and fraudsters in the ICO platform so we can promote more trust into it and make it pro-investors and pro-people.

in terms of quality and security, the IPO is more better than the ICO, where investor rights are better protected. but I hope that in the future ICO organizers can be even better and start adopting several systems in the IPO to protect investor security and prevent the occurrence of scamer actions

I agree cryptocurrency market also needs strict rules and regulations to protects investors money.This will further benefit this blockchain technology and crypto market.I think more than 50% market is down because of frauds and scams going on this market.This crypto market needs better regulations and rules otherwise soon it will turn extinct.

I hope so it happens but ipo is a real world thing and each and every ipo is highly regulated by the local financial authorities while icos are not regulated as of yet that is why we often hewr about scam icos.

Yes I also heard about it.I think in future every big business house, company, entity will try this blockchain technology for their benefits.Let us wait for that time.

Scams and frauds are currently biggest enemy of cryptocurrency market.

if we had a choice to invest in IPO or ICO, I think many would choose the first option, since this is a more reliable investment.

will not, even though ICOs and IPOs have similarities but ICOs will not likely take over the IPO, they do have almost the same goals and definitions but their ways differ greatly.
you can read it here https://cointelegraph.com/ico-101/ico-vs-ipo-key-differences#ico-and-ipo--pros--cons-table

I think it will take long time for ico to replace ipo. After all cryptocurrency is not totally legal and not enough laws accordingly.

No ICO can never replace IPO, it is totally different thing, if you joining IPO you make a commitment with the company you invested in, you own a part of the company, you become part of it, you can vote on what the company should do or should not do next. While on ICO, you just buy a coin from, and nothing happend, except you want to use your coin/token in the platform, all you need to do is just leave the coins in your wallet, and wait for the price to raise up.

its all about regulation, regulation its sometimes like centralization, ICO right now is resrticted in many countries..i dont know in the future ICO are growing or not its depend on market...

So many ICO's scam, when nots scam its failed or price is drop so deep when listed on exchanger, why thats happen???

ico is very familiar with investors and what is ipo? IPO is the initial public offering. A company can raise money by issuing debt or equity. For the first time, companies that raise capital from the public by issuing shares are called IPOs.

It's easier to go the ICO way in the crypto world, this is because these projects or companies don't owe you nothing as they clearly state in their whitepaper. They are not answerable to no one. They could just go under overnight and "life goes on". This is not the same for IPOs. Companies issuing IPOs are mostly very established and they usually satisfy certain requirements of regulating authorities. With IPO's, as an investor you own part of the company as a shareholder, you can vote and be voted for, you're entitled to dividends, etc

Here's an article explaining the key differences between an ICO and an IPO:

https://coincodex.com/article/2283/the-differences-between-an-ico-and-an-ipo/

Thanks for your link.But my question is will ICO which is based on new technology Blockchain can replace IPO which is not on any technology.Is it possible in near future companies give coins/tokens instead of shares/stokes to their investors???

The most obvious difference between IPOs and ICOs is that the IPO must collect it if it has to go through many regulations such as government agencies, financial institutions, permits and this is also not acceptable later. While the ICO is simpler and easier without unusual rules such as an IPO and can be followed by a unique search, there is no minimum limit for investing in the ICO.

I Think it will not. There are so much examples when projects scammed after collecting money during ico. If we want to exclude such situations, then we need a government regulation. But who likes government regulation, huh? ???

If ICO will create security tokens, this will erase borders between them. Now almost all ICO this is just utility tokens, that won't give you part of profits for holding. IMHO they can replace but they all must become security.

if too many ICO scams are likely to be reduced by the ICO investors and will turn to the IPO. because the IPO is definitely anti-scam and clearly even though the profit is not as big as the ICO

As long as SEC classify most of these ICOs as security then there is no difference between the two, it is just that we are trying to play with words, P is for "public" and C is for "Coin". It is very unfair to try to define these terms to suit out own claim until the government come out with regulations to clear the air

As long as SEC classify most of these ICOs as security then there is no difference between the two, it is just that we are trying to play with words, P is for "public" and C is for "Coin". It is very unfair to try to define these terms to suit out own claim until the government come out with regulations to clear the air

i did not know about this difference so thank you for explaining it to us. therefore i am wondering now why have we let all those ICOs to get easy money from all of us without the evidence of a good final product?  ??? ::) :'(

I will say this is an inevitability, but let me explain further. Currently, most ICOs are little more than utility tokens-holder has no rights to shares which result in dividends etc. What you will see over the coming years are tokenized securities making their way into this space, essentially allowing companies to issue shares in a decentralized and secure manner (via blockchain) there are some examples of security tokens out there today but they are a few. Keep an eye out for new platforms like Mobu and CDRX which are gearing up for this eventuality. I j fully believe the traditional equity markets will shift to blockchain, I just feel a lot of regulation will come before it happens on a large scale. The advantages of blockchain have been proven, just the process is not straight forward or regulated enough yet.

add to everything else ITO

Initial Token Offering

This name is valid for all projects that release a token

Comparison with IPO is inappropriate, as it has legal force in contrast to ICO

The Initial Coin Offering (ICO) is a strategy excited by the cryptographic cash improvement. It is a strategy for crowdfunding for the new organizations (https://www.icoclone.com), which joins making and pitching tokens to finance the begin and the advancement of a venture. ICOs are related to the blockchain innovation.

The Initial Public Offering (IPO) is a settled in method driven by an exclusive business in order to stretch out and end up being exchanged on an open market. It incorporates a couple of traditions in the term of the methodology. Initial public offering suggests the all-inclusive community freedom of the offers of an association, with the target of social event resources for development.

These are the reason ICO is superior to IPO:

• ICO is to raise resources for the endeavor and enter the market, and the ICO is commonly performed by the novices
• ICOs are not confined to any legitimate report.
• In the ICO methodology, associations mustn't have notoriety or any regulatory framework. Most ICOs have just a white paper that isn't essential.
• The range of an ICO as a general rule takes as long as multi-month.
• ICOs are opened for anyone. All you require is the cash of Bitcoin or Ether which you will change over into the token of the particular ICO./li]
  

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until I see real results change in the cryptocurrency market, for me there will be no difference in this or that choice. To date, we are probably the indicators of ico company and the presence of a large number of scammers, but nevertheless Among the total number of projects there are quite promising and promising.

IPO is for stocks and probably it can´t be comared with ICOs. Creating IPO is not as easy as creating ICO you need to meet all gov requirements and it takes about 2 years to get listed. While I can make an ICO in a hour without any knowledge.  8)

It is a bit different process, but as we see ICO is more popular with crowds. You can take part in ICO without any barriers and sometimes you don't need documents to do that. You van be even under 18 years to buy tokens on ICO, that is cool!

They have the same purpose to collect funds but different in regulations. IPO is more on established business that needs more funds so they can expand their business while the ICO are just a new project with no background at all so technically its more risky to invest on ICO compare to the IPO.

ICO and IPO are the same, TGE, IPO, STO, ICO and all of these are offering security token to sell. There was a lot of TGE platforms which fail develop the product just like ico too. TGE can be classified as security too.
You can't put the different definition for TGE.