ServiceICO.com | 4 Key Differences Between ICO and IPO | ICO Promotion Services

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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.

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ServiceICO - ICO Promotion Services

• Key Differences Between ICO and IPO

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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.

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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.

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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.

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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.

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