The cryptocurrency industry is luring more and more people into the digital finance world. And it’s no surprise because cryptocurrency is being talked about almost everywhere these days. You might have heard about cryptocurrency at work, on the underground, from ads, from friends, it doesn’t matter. The main thing is that you have ideas to get to know the cryptocurrency closer. So what do most newcomers do? They go and read articles or watch videos about how to get started before entering the cryptocurrency market. There is also the category of people who go straight to a popular exchange, get registered and verified, and then make a deposit in the hope of starting a successful trade.
However, the digital asset market, just like many other areas not necessarily connected with economics, has its own terminology, which it is advisable to know before you dive headfirst into the industry. Some of these, namely ICOs, IDOs, IEOs, and IGOs, will be discussed below.
What is an ICO?
Perhaps the most popular on today’s list is the ICO. If you are interested in company news, you must have heard the term IPO. If not, an IPO is the primary public offering. It is needed for companies that are about to go public and make their first public sale of shares.
ICO, that’s from the world of cryptocurrency, the abbreviation stands for Initial Coin Offering. It’s no secret that much of the crypto industry has migrated from traditional markets. The ICO is no exception.
The main purpose of an ICO is to raise funds for a startup or a project. If you saw similarities between IPOs and ICOs, you’re right, they are similar. There are just some differences:
- ICOs are virtually unregulated, and issuers have many options for choosing the price of a coin and its negotiable offerings.
- ICOs can also provide certain benefits and advantages to the users who purchase them.
- ICOs are the most popular way to issue tokens (cryptocurrencies) because it is an extremely simple processes.
What is an IDO?
An initial dex offering, or IDO. This method, like an ICO, is needed to raise funds for the cryptocurrency industry.
Typically, this method of fundraising is done by exchanging tokens representing various assets listed on a decentralized exchange (DEX). IDOs are often conducted when a project issues a currency or token through a decentralized liquidity exchange.
What is an IEO?
An IEO is an initial exchange offer.
An IEO is pretty much the same as an ICO, except that companies will have to be vetted by a third party, such as an exchange. If all criteria meet the requirements, everything will be fine and the companies will be able to place tokens and coins on the exchange they have chosen.
Here again, an analogy can be made with an IPO. When a company on the stock market wants to go public and offer shares, they also need to be vetted by the stock exchange and only after they successfully pass, the IPO will take place.
What is an IGO?
It is no secret that thanks to blockchain technology, a large number of games and game projects have sprung up. They also require placement. IGO is the initial placement of games. It turns out that some game startup sells native tokens of the platform, which will be used later in the game, at the time when the game is in development.
This is a good boost for developers in financial terms because when you want to create something that will play millions of users, do not save. Thus, thanks to IGO, the developers raise the necessary funds for the project and the investors get access to NFT, which will be useful for participating in the project.
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