What are ICO, IEO, and IDO?
- What is ICO?
- Why choose ICO?
- Advantages of ICO
- Disadvantages of ICO
- What is IEO?
- Why choose IEO?
- Advantages of IEO
- Disadvantages of IEO
- What is IDO?
- Why choose IDO?
- Advantages of IDO
- Disadvantages of IDO
- The difference between 3 types of funding ICO, IEO and IDO
What is ICO?
• ICO (Initial Coin Offering) is a form of issuing cryptocurrency or electronic money for the first time on the market at a discounted price to raise capital.
• ICO is one of the most popular crowdfunding methods by far.
Why choose ICO?
• ICOs are often used to launch a new service or product in the cryptocurrency market, typically a new Token. It is very similar to IPO (Initial Public Offering), which raises capital for a new company when it first enters the stock market.
• So, when you decide to make a profit in this way, you need to buy at the community price when the token is opened for sale at the ICO, then wait for the product to develop and sell.
Advantages of ICO
• Starting and setting up an ICO project is relatively easy compared to STOs and IEOs. Companies with ICO projects need to issue a Whitepaper, a website of related products, and a team that will execute the project's techniques.
• The cost of launching an ICO is relatively low, so it is suitable for new investors in the market with a small investment.
• The government has less intervention in this form.
• More liquidity in a short period of time.
• Investors have complete control over their money.
• One can raise funds through bounty programs, private and public sales, and Airdrops.
Disadvantages of ICO
• One of the main disadvantages of this system is the security features. The system is easily exploited by people with malicious intentions. (read more about scams)
• For long-term investments, ICOs may not be a good choice.
What is IEO?
IEO (Initial Exchange Offering) is a form of token issuance for the first time on centralized exchanges (Binance, Okex, ...). Projects directly issue their tokens on the exchange to individual investors.
Why choose IEO?
• Startups that want to offer an IEO on a centralized exchange must pay a listing fee along with a percentage of the number of tokens sold.
• In return, the tokens of these companies will be listed on the exchange right after the IEO ends.
Advantages of IEO
• All exchanges are KYC/AML verified, so it ensures very high safety for investors.
• Investors directly participate in the exchange, unlike ICOs and STOs.
• Due to the levels of regulation, the trusted platforms of exchanges can protect investors from fraudulent activities.
• Investors do not transfer their funds into a smart contract like an ICO but buy directly into their account.
Disadvantages of IEO
• Funding costs are very high in IEOs, and the system is difficult to set up.
• Liquidity is very low compared to the other two groups.
• Investors have very little control over the operations of the exchange.
What is IDO?
• IDO (Initial DEX Offering) is the first form of token issuance on a decentralized exchange (DEX).
• IDO is a particular case of IEO. The main difference between IEO and IDO is that IDO is executed on a decentralized exchange.
Why choose IDO?
• IDO can be organized by the project itself, the issuer of that token independently, independent of any unit, organization or individual.
• IDO can be performed directly from the project's development team on the blockchain platform through transactions from the project's product, the issuer.
Advantages of IDO
• No Need for Anyone's Authorization
• Instant Liquidity Instant
• Lower Costs
• Easy for Everyone
Disadvantages of IDO
• Lack of Control Mechanism
• Immediate price movement when conducting large volume transactions
• No real information about investors
The difference between 3 types of funding ICO, IEO and IDO
The above is a summary Advantages and disadvantages of 3 forms of token issuance for the first time in the market. I hope this can help you have an overview of the risk market and the potential of this market.
DeFi has been and will be the future development trend of the decentralized financial market.
So, let's DYOR and choose for yourself a reputable project to invest in!
Hope you can achieve x2, x3 even x10 accounts with your investments in this round!
Let’s rock to join BHO Network IMO Round 3 at https://imo.bholdus.com/
IMO Round 3: Purchase period: At “13:00 11/9/2021”, those who have successfully registered an account and provided their BEP20 wallet details may participate in IMO – Round 3 at $0.0055 (limit: $100 - $3000).
IMO – Round 3 will end at “13:00 13/9/2021", or until 60.000.000 BHO tokens (equivalent to $330.000) are sold out, whichever comes first
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Published on September 05, 2021
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