I'm confused a bit between ICO and Crowfunding sale. ICO also used to collect funds from investors like Crowdsale. Ethereum provide both options run an ICO or Crowdsale, then what is the difference between two?
Please help me to understand the difference.
It’s really hard to tell the difference, since many projects in attempt to bypass legal regulations for the ICO start to call their fundraising campaign crowd sale instead of ICO.
ICO can include pre-sale and public sale, during both phases project raises funds and emits tokens. On the other hand crowd sale is more like public sale phase.
By the way, there can also be pre-ICO, which is more about raising funds for project’s ICO and without token emission (but with some agreement). Pre-ICO is not Initial Coin Offering, because if it fails there won’t be any token emissions or transfers.
The crowdsale IPO refers to the public sale of the shares of the company, with the goal of collecting funds for development.
Initial coin offering ICO is also one of the fundraising methods the startups creating and selling tokens to raise funds for development. ICO refers to pre-sale and public sale. ICOs are related to blockchain technology.
Both ICO and IPO are similar processes and are well promising processes that can lead a company to success.
