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Discover 4 key variations between ICO & IPO and Explore ServiceICO's ICO Promotion Services to have your audience informed and interested in the advanced crowd sale events in the blockchain.
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Differences Between ICO and IPO • The cryptocurrency market continues to bring the consideration of many traders and investors in similar proportions. • Though its critics consider it no more as a ”bubble” that can pop at any point in time, its supporters have come out in its support fully and term it as a revolutionary innovation. • Initial coin offering or ICO is strange from initial public offering (IPO) in the sense that both methods use diverse means with a common goal- to collect funds for the project. However, there are other variations too that are mentioned below.
ServiceICO - ICO Promotion Services Key Differences Between ICO and IPO
Regulatory Oversight • Unlike IPOs, ICOs are not forced legitimately to issue any form of legal documentation. • ICOs are unregulated, which signifies that just about anyone can start it by describing key information concerning the project in the whitepaper. • On the other hand, any company looking to issue IPO must create an outline which must incorporate key information about the company and its aim to issue its shares in the public domain.
Track Record & Credibility • IPO is a long process which needs the verification of accounts by licensed accounting firms, liaising with exchanges, and investment banks to act as underwriters to satisfy specific requirements. • It is necessary to have a good track record before a company can list its shares through IPO. • On the other hand, ICOs do not require any track record or adherence to the regulatory framework. This makes it very tough to evaluate their fundamentals.
Utility • The stocks earned through IPO represents an ownership stake in the project. • The utility of holding stock authorizes shareholders to receive dividends and a right to vote in the shareholders meeting. • On the other hand, investment in ICO coins does not yield an ownership right to the unit holders. However, there are other ways through which investors can reap advantages in the future.
Duration of Offerings • Traditional IPO issuance can take anywhere from 4 to 6 months as it is required to go many legal stages to get a final consent of the relevant authorities. • The whole process of ICO is of the much shorter term as it depends on the nature and timeline of the project. Once a whitepaper is drawn out, just about anyone can drive the crowd sale.