Cryptocurrency Token Sale Terms Explained in Layman Terms

in #cryptocurrency5 years ago (edited)

Just like we have IPO (Initial Public Offering) in mainstream investment world. There are token sales in cryptocurrency world as well.

ICO

Stands for Initial Coin Offering, a public offering where user sends funds to particular crypto address given by company and receives the token.

Example: Ethereum, EOS.

IEO

Stands for Initial Exchange Offering. Unlike an ICO, IEO is not open in public, you will have to be user for IEO hosting exchange to buy tokens.

IEOs can be better than ICOs as usually here exchange's reputation is at risk.

Example: Bittorrent IEO on Binance.

STOs

Stands for Security Token Offering.

There are two types of tokens in cryptocurrency world.

  1. Utility tokens: Utility tokens can be redeemed for services offered on the platform.

  2. Security tokens: Here contributors get security tokens which give right to dividends, shares, equities etc of the platform.

Being security, it is important to comply with the government regulations. Hence STOs are highly popular among long-term investors.

Example: Polymath.

IDO

This is the most recent one, supposedly stands for Initial Dex Offering.

Unlike an IEO (where tokens are sold on centralized exchange), here tokens are sold on DEX platform.

Example: Raven protocol on Binance Dex.


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Sorry for that thumbnail :<

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Is the Binance dex really decentralized?

And why cant you buy rvn on normal binance?

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Decentralized is for namesake at this moment as most of 11 nodes are run by binance partners. Anyway, absolute decentralization doesn't exist.

I have no idea, may be raven team decided to make listing on dex.

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So there is no real dex yet?

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It's a dex but nodes are not really that scattered to make it really decentralized.

Also in eos, most power is with Chinese community so eos is not really decentralized either.

Hope I did not make you more confused lol

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Nah dont worry

Im just searching for a dex. I dont like centralization

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Forkdelta.app is the real dex.

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Nice! Thanks

What do you think of bisq
https://bisq.network/

or block dx ?

https://docs.blocknet.co/blockdx/setup/

No idea, I haven't used them.

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