What is the difference between ICO and Token sale?

[Cryptokobi]

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!

[StockBet.com]

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.

[Cryptokobi]

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?

[StockBet.com]

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.

[Cryptokobi]

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?

[akmittal]

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.

[munareal]

 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.

[Cryptokobi]

ICO - when company issues initial tokens for the first time which can represent a) partial ownership/pay dividends (rare token model) b) be used in this company's infrastructure (gaming, gambling, etc.) c) used just for speculation

Token sale - happens after ICO, to sell already existing tokens.

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

[Shivasenap]

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.

[auliahr]

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.

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.

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.

[SimilarCoin]

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.

[PhucS]

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

[StockBet.com]

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?

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.

[lionelho]

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

[Keziara]

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.

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

[Invester]

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!

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.  

[yusuf98]

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.

[sapusapu]

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

[Smoothmazi]

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.

[hgmarral]

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