Cryptocurrency crowdfunding

ICO vs IPO vs VCI – What’s the difference?

What’s the difference between:

  • ICO – Initial Coin Offering

  • IPO – Initial Public Offering

  • VCI – Venture Capital Investments (Angel Investors)

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ICO

The Cryptocurrency IPO without the Venture Capitalist Investment delay.

An initial coin offering is a crypto crowfunding solution for start up blockchain companies.

How it works:

Pros:

  • The ICO company keeps full ownership of the company.
  • The founders raise capital quickly for operation cost.
  • The ICO investors can quickly flip the crypto token on the cryptocurrency exchanges without waiting years.

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No Country Restrictions:

  • Crypto-currencies are Peer to peer-  ICOs are available to anyone around of the world to invest in.
  • These equity crypto tokens can be sent and traded to anyone with the internet and from any country.

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ICOs are extremely high risk investments:

  1. They are not covered by any regulations
  2. The ICO company can disappear with the money at any time.
  3. These are start ups – They have been in business for less than 2 years

IPOs

Initial Public Offering – The word ‘ Public’ redefined.

Established companies run an IPO to finance expansions.

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These private companies have been in business for have been in business for the several years.

  • They have an existing track record of good business.
  • They need to adhere to all local financial regulations.
  • IPOs require a lot of paperwork

IPO investing is considered low risk compared Blockchain ICO investing

The dark side

wallstreetUnfortunately IPO investment  is reserved for the elite of the country.

Only a closed circle of investors or high profile investors qualify to participate in an IPO

Smaller investors can purchase only stocks after they reach the stock exchanges.

VCI -Venture Capitalist Investment

Angel investors /the business angel/private investor/angel under/seed investor

Venture Capitalist Investors are elite investors  who invest in high risk projects in exchange for company equity.

  • The start up companies give up ownership in exchange of the investment.
  • Angel Investors need to wait years before they see their ROI
  • Venture Capitalist lose a lot of money with failed investments.

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ICOs are the best both worlds.

So much so, that Angel Investors have started investing ICOs.

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