Fun

ICO and IPO

sahar78 - 2024-06-23 16:27:18





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Assalamualaikum

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Greetings to you all!


![ai-generated-8491316_1280.png](https://cdn.steemitimages.com/DQmf4nFSs3nyys5LDp2vYbJXBPAhDENs2r7KspfhQXdb2cr/ai-generated-8491316_1280.png)[Pixabay](https://pixabay.com/illustrations/ai-generated-crypto-trader-8491316/)








Initial Coin Offering and Initial Public Offering are two most visible and demanding fund raising way by the use of companies for raising capital from investors.But both of these ICO and IPO serves here for similar aims but still there are multiple differences in them.

|IPO
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An Initial Public Offering is one of most common fund raising way in which a company issue stocks for public in begining.This is a process which permits companies for raising capital by sell of their shares to investors that become owners of the company in partial manner. IPO are heavily managed by government agencies like Securities and Exchange Commission in united states for ensuring investor safety and transparency.

|The IPO process involves the following
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- Filing of a registrated statement with regulatory agencies.
- Conduction of a roadshow for the purpose of presenting company financial prospects.
- For purpose of setting initial offering prices.
- For purpose of listing shares at public exchange of stock.

|Following are IPOs benefits
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- Accessibility to large capital pool.
- More enhanced liquidity for share holders.
- Increased level of credibility and reputation.
- Increased capabilities for attracting high talented and strategic partners.

|ICO
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An Initial Coin Offering is one of much advanced fund increasing or raising way in which company issues cryptocurrency or some particular tokens for purpose of raising capital. ICO is most commonly used by start ups and projects of blockchain technology and cryptocurrency world.ICO is commonly not more regulated but it is still subjected to some legal needs.

|The ICO process involves
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- For purpose of creation of white paper which may outline or highlight the project goals and technology.
- Used for conduction if a token sale in which investors buy tokens with cryptocurrency.
- For purpose of listing tokens at reputed crypto exchanges

|ICO offer several benefits
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- More speedy and more comfortable fundraising process.
- Reduced costs in comparison to IPO.
- More capabilities for raising capital from global pool of investors.
- Enhanced potential for enhanced returns on investment







![trading-6531134_1280 (1).jpg](https://cdn.steemitimages.com/DQmVnG4fyaivoWEYwS5J1dajUMuDT15c7Bbi1GpQAMFMDRj/trading-6531134_1280%20(1).jpg)[Pixabay](https://pixabay.com/photos/trading-blockchain-cryptocurrency-6531134/)



I am now concluding it by saying a brief that IPO and ICO are two distinct fund raising methodology each with their own pros and cons but IPO offering more traditional and regulated approach.ICO is a way of providing an advanced and innovative method for raising capital. Companies should consider their aims, industry, and regulatory needs while choosing in between both of these two options.


I hope for today this is enough!!


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Have a blessed day

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