IPO vs ICO vs IEO vs IDO
In this article I will be explaining about these four topics IPO(Initial Public Offering), ICO(Initial Coin Offering), IEO(Initial Exchange Offering) and IDO(Initial DEX Offering) in layman’s terms with some references and examples.
IPO(Initial Public Offering)
If a company needs more funds to increase the growth of it they turn their private company into a public one by distributing some parts of company shares. (Shares are nothing but a unit of ownership of a company). Peoples used to buy the shares in a belief that company’s growth will increases and then they will also get profit by the unit of shares they holding.
Example: Alibaba group companies raised up to 25 billion in the IPO by distributing the shares.
To know more about IPO check this out:
ICO(Initial Coin Offering)
ICOs are more like IPOs but different in some aspects like ICOs are supported by the blockchain network. In an ICO they distribute the tokens which can be used to buy things in the same platform or can be traded in exchange for other crypto tokens like ETH, BTC… and also those who hold the tokens are not like share holder of the company like in an IPO. There will be high profit in participating ICO but also at the same time if you had invested in a wrong ICO there are many chances to loss .
To know more about ICO check this out:
If you like to know how to participate in an ICO check this out
https://youtu.be/5yAyRt2lqbY (In Tamil)
IEO(Initial Exchange Offering)
Exchanges conduct the ICO process, the major advantage of IEO is that exchanges itself will make deep technical analysis in the project and also list the projects which earn good profit. We can trade using the tokens in the same exchange itself we don’t have to look for an exchange which accepts the tokens from ICO. Not all projects listed in IEOs will give profit there might be a chance for loss.
Binance is pretty good in IEOs and many projects listed in it gives good amount of project.
To know more about IEO check out:
https://youtu.be/zykW4y-QsMo (In Tamil)
IDO(Initial DEX Offering)
This is also one of the best fund raising methods which are more like IEO except for the platform which hosts the fund raising method. ICO and IEO are a centralized exchange that can be replaced with IDO which is a decentralized exchange. IDO is definitely a next step in Blockchain Finance and DeFi (Decentralized Finance) especially.
To know more about IDO check out these references:
https://hackernoon.com/what-is-ido-the-new-alternative-to-ieo-and-ico-70l34zf
https://youtu.be/EjSAmO1pZ6M (in Tamil)
If you like to know more about Blockchain and cryptocurrencies in Tamil check out this YouTube channel https://www.youtube.com/channel/UCyhvw_nJtkbrB8uEfyjhK6w
I’m grateful to Pradymanickam for the support to complete this article.
