IPOs have been around for a long time in different forms, though most people would likely associate them with companies going public on the modern day stock market. IPO stands for Initial Public Offering, and it is when a company first goes public with selling shares of its company to individuals and/or institutional investors in order to raise capital for the business to grow and/or expand (usually in exchange for fiat). Many investors like to keep an eye out for IPOs, because if one is a successful company, than the IPO could likely be one of the lowest prices per stock that it will ever be. Since IPOs have been around for a long time, they are very established in regulations and oversight.
ICOs are more recent in history (coming about in the last few years), and are very similar to IPOs. An ICO stands for Initial Coin Offering, and it is when a company, usually in the Fintech or blockchain space, creates a digital token (cryptocurrency), and then sells the tokens to individuals and/or institutional investors in order to raise capital for the growth and/or expansion of the company. ICOs usually sell their tokens in exchange for other digital currencies. The tokens sold can either be kept for later use of the company’s products or services, or kept in the hopes that they will appreciate in value. ICOs are in their infancy stage, and due to the fact that they don’t exactly fit into most previous regulations, and to the fact that a high percentage of them fail, and because of the very volatile nature of cryptocurrencies, many countries have been scrambling to decide how to deal with them… what should they be recognized as, and how should they be regulated, if at all?
The infographic below will give you a bird’s eye view of the differences between ICOs and IPOs, as well as some history, stats, and other useful information concerning these unique methods of fundraising.
Enjoy the graphic below,
The Cyberius team.
Created by Cyberius, a digital marketing company who specializes in online community management and crowdfunding.
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