Do it yourself: ICO vs IPO

[pacman7331]

I noticed some companies do ICOs and the coin isn't really an actual cryptocurrency. Binance for example has a token but the only use of it is to get you discounts on their platform when trading. Nothing wrong with that, but it's not the same as an actual currency like bitcoin, it's just a token only meant to be useful for trading on Binance.

So can any company tokenize their equity with an ICO? Or do you need to have create some sort of digital utility? What if you say: this company will be worth 10 million dollars next year, and we are having an ICO to raise funds to get it going, the cryptocurrency will represent the company's value, and dividends will be paid out every year. There is no utility to the token except to serve as a security for trading.

I mean, what is to stop every single commercial enterprise from making their own currency? And then making it's value based on the company?

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[jeanne513lefe]

I think the concept between ICO & IPO are quite different.

The target based on ICO tokens are the "services". While IPO represents the entire value of the "company".

That is to say, a [Suspicious link removed]pany can also hold a IPO and distribute its stock shares, while a traditional listed company can create a token for a particular service it provides.