Create a FREE account and...
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
OR
Please fill out the required fields Please fill out the required fields Please fill out the required fields
Get Into Cryptocurrency Trading Today
Both established and starting companies need money for operations. Even though they can get funding from private investors, public offerings are quite lucrative. Companies have mostly relied on Initial Public Offerings (IPOs) to raise funds.
The IPOs have elaborate regulations with several documentation. They tend to be costly to set up in the long run.
The entry of blockchain has come with the age of Initial Coin Offerings (ICOs). For ICOs, a company sells token to potential investors. Investors then seek to gain later when the project becomes successful. Setting up the ICO is hassle-free and more accessible.
Still, both IPOs and ICOs have security risks. This article looks into the safest.
Let's get to it;
Introduction stage
IPOs occur when the company is already running and established. By then, the investors know what they are getting into. The companies, at this point, do need long-term capital, not development funds.
ICOs occur at the earlier stages of the company. At this point, the company is yet to have a concrete blueprint for development. The earlier stages offering makes it riskier.
Regulation
The regulations between the two investment options differ. The Securities and Exchange Commission regulates IPOs. ICOs, on the other hand, work on self-regulated blockchains.
Even with the difference in regulations, both means possess risks of scam. They have both had cases of scams before. You have to do due diligence before investing in either.
Listing Requirements
Investors can put their money on an ICO even without the underlying token. It is all in the principle of good faith. There have been instances of tokens failing to take up. IPOs, on the other, must provide for verifiable listed shares. The investor can rely on share performance when making an investment decision.
Allocation
The decentralized nature of blockchains means there is no central control. It is a free market where one buys tokens depending on ability. This has seen the rise of whales who can control the market prices. IPOs, however, come with allocation control. The regulation uses various methods to ensure fair asset allocations.
Investor Requirements
IPO is an ideal investment when the company of interest is in your country. The process of acquiring such shares is straightforward. It gets a little complicated when investing in foreign companies. You might have to use a broker due to the additional requirements.
Investing in ICO is quite a breeze. All you need is access to an internet connection. You are free to invest in projects from anywhere in the world. An exception is on securities for the US, also if you are in countries that ban cryptos.
Utility (Investor Profits)
Acquiring stocks of a project through shares allows your stake in the company. You earn dividends depending on company performance. You can also sell the shares when the values increase.
ICOs don't guarantee ownership of the project. The whitepaper of the project details how the investors will gain.
Looking at the difference between IPOs and ICOs, it's easy to conclude IPO is the safest. You might think the regulations keep you safer. A company can still fail even with the legal requirements and documentation. Investing in a promising ICO comes with the needed profits, yet with less bureaucracy.
The only way to ascertain the best option is to look into their pros and cons. Here are the benefits and concerns for both;
IPO
IPO comes with several benefits like reliability. You invest in a known asset with no expectations. It also comes with legal requirements from regulations hence customer peace of mind. The presence of company records also allows for ascertaining the real value of the company.
It also comes with significant issues like complicated registration. The investor is also limited to the amount and country.
ICO
Like IPO, ICOs also come with several benefits. It is a fast investment method. There is no chain to follow or legal requirements. It is also great for small investments as it does not provide for limits. Being the sole controller of your assets also means you choose the risk you wish to incur.
The only concern with ICOs is the possibility of od loss from scams projects.
Until this point, the IPOs still seems to be the most secure due to regulations. Still, there is a case for the ICOs. Digital currencies have been gaining market traction. They are fast becoming mainstream. The more they become widespread, the more regulations become a necessity.
The hype surrounding virtual currencies has by now gone down. The regulations are taking over. Already, some projects have listed their tokens with the SEC as securities. However, they still go with the ICO option due to the flexibility and speeds it comes with.
The use cases of digital assets are becoming more by the day. The shares from the ICOs can be part of an autonomously executed program. These systems are free from any human interference. For that, you can always believe the results on the performance of the tokens.
The decentralized nature of blockchains also makes ICO valuable for any investor level. The small investors don't have to worry; then big ones would rule in their favor.
The security of the ICOs is also excellent on its flexibility. Even though a new system, their use is not limited to startups. Even the existing companies can use it to raise funds. It's even convenient for them as they are easier to evaluate.
ICOs have proven to be a reliable way to raise funds. They come with more use cases and improves innovation. The only concern is the scams and other malicious users, giving it a bad reputation. The industry is headed for more regulations; hence it will be safer than ever.
Every investor is always after a return on investments. The only way to ensure the returns is by investing in safe assets. Both IPOs and ICOs are reliable fundraising means for companies. The investors gain part of the company through shares.
Even though IPO has been operational for longer, the ICOs are becoming the main deal. They come with ease of investing and decentralization. They are also getting more secure as blockchain become more regulated.
Hey there, if you’re keeping an eye on the crypto space or global finance, you’ve likely heard whispers about Russia&r
June 20, 2025 | Joanna Newman
Why the Digital Ruble Is Turning Heads
June 20, 2025 | Joanna Newman
Hey there, if you’re keeping an eye on the crypto market, you’ve likely heard the buzz about Ethereum’s latest move. The integrati
June 18, 2025 | Joanna Newman
Why Hyperliquid Tech Matters for Ethereum
June 18, 2025 | Joanna Newman
Create a FREE account and......
Manage your own Watchlist
Access all education lessons
Converse with other crypto enthusiasts
Be a part of the Interactive Crypto Community
ALL
TRENDING
WATCHLIST
Total Market Cap The Total Market Capitalization (Market Cap) is an indicator that measures the size of all the cryptocurrencies.It’s the total market value of all the cryptocurrencies' circulating supply: so it’s the total value of all the coins that have been mined.
{[{ marketcap }]} {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H) {[{ marketcapchange.toLocaleString(undefined, {maximumFractionDigits:2}) }]}% (24H)
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting all the data from several exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current price and the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Symbol
Price Cryptocurrency prices are volatile, and the prices change all the time. We are collecting allthe data fromseveral exchanges to provide the most accurate price available.
24H Cryptocurrency prices are volatile… The 24h % change is the difference between the current priceand the price24 hours ago.
Trade
{[{ item.name }]}
{[{ index + $index}]}
{[{ item.pair.split('_')[0] }]}
Ƀ{[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]} ${[{item.price.toLocaleString(undefined, {maximumFractionDigits: 5}) }]}
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
{[{ item.change24.toLocaleString(undefined, {maximumFractionDigits: 2}) }]}%
Breaking: North Korea’s Cyber Attack on Crypto Workers Could Shake Bitcoin and Beyond
June 20, 2025 | Joanna Newman
Samsung and Apple’s Foldable Phone Race Could Spark a Crypto Surge
June 19, 2025 | Joanna Newman
Hyperliquid Coin Nears $100B—Could This Fuel Bitcoin’s $104K Surge?
June 18, 2025 | Joanna Newman
Ethereum’s DeFi Leap with Hyperliquid Tech Could Push ETH to $3,500—Here’s Why
June 18, 2025 | Joanna Newman
Tezos (XTZ) Review 2024: Everything You Need to Know Before Buying Tezos
.article-container { font-family: Arial, sans-serif; line-height: 1.6; color: #333; backgrou...
Chromia (CHR) Review 2024: Everything You Need to Know Before Buying Chromia
Illuvium (ILV) Review 2024: Everything You Need to Know Before Buying Illuvium
My Neighbor Alice (ALICE) Review 2024: Everything You Need to Know Before Buying My Neighbor Alice
Star Atlas (ATLAS) Review 2024: Everything You Need to Know Before Buying Star Atlas
OQtima
Oqtima is an emerging online trading platform that offers a wide range of financial instruments, inc...
Saxo
Saxo Bank is a leading global online broker offering a wide range of financial instruments, includin...
FXCC
.article-container { font-family: Arial, sans-serif; line-height: 1.6; color: #333; background-c...
Quadcode Markets
Quadcode Markets is an online brokerage offering a wide range of financial instruments, including fo...
Trading 212
Trading 212 is a popular online broker offering a range of financial products including stocks, ETFs...
(adsbygoogle = window.adsbygoogle || []).push({}); Introduction In t...
(adsbygoogle = window.adsbygoogle || []).push({}); Einführung Wenn es um Er...
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
ICOs Safer Than IPOs? Discover the Reasons
Both established and starting companies need money for operations. Even though they can get funding
The Japanese Economy Could Evolve Thanks to Bitcoin
Recently, China has paralyzed its cryptocurrency market by banning the trade of this newer type of c
Switzerland Formally Considers The Idea Of Having A State Cryptographic Currency
Switzerland is known in the world of cryptocurrencies as a crypto-nation. The Crypto Valley or its r
Scam Tsunami: How Fake Investments on Instagram and Facebook Are Swindling Billions and Undermining the Crypto Market
.article-container { font-family: Arial, sans-serif; line-height: 1.6; color: #333; background-co
Top 2025 Crypto Price Predictions: Bitcoin, Ethereum, and Altcoin
.article-container { font-family: Arial, sans-serif; line-height: 1.6; color: #333; background-color
The Everyday Fruit that's a Powerhouse of Nutrition and Your Weight Loss Ally
(adsbygoogle = window.adsbygoogle || []).push({}); IntroductionWhen it comes to nutrition a
The Top 10 Crypto Assets with the Highest Potential in 2025
.article-container { font-family: Arial, sans-serif; line-height: 1.6; color: #333; background-color
The oldest and most powerful remedy to permanently get rid of insects and ants
(adsbygoogle = window.adsbygoogle || []).push({}); IntroductionEach year, as the hot season
Two Beds, One Dream: The Growing Trend of Sleeping Apart for Better Rest
(adsbygoogle = window.adsbygoogle || []).push({}); IntroductionIn an era where quality slee
Counterproductive Habits: How Certain Attitudes Can Nullify the Benefits of Regular Physical Activity
(adsbygoogle = window.adsbygoogle || []).push({}); Unraveling the Missteps that Can Undermi
(adsbygoogle = window.adsbygoogle || []).push({}); Introduction In t...
(adsbygoogle = window.adsbygoogle || []).push({}); Einführung Wenn es um Er...
Mobi
Are you someone who makes international payments regularly using Bitcoin? Or do you travel a lot and...
Bitcoin.com
Bitcoin.com is a free downloadable Bitcoin wallet that allows users to trade and receive Bitcoins. T...
BTC.com
Created by Bitmain in 2016, BTC.com is a leading open-source Bitcoin and Bitcoin Cash storage platfo...
COMMENTS (0)