What is the Difference Between an ICO and a Token Sale?
The two phrases get thrown around, but there are differences that you should be aware of.
The majority of ICOs seem to describe token launches on Ethereum. So, does that make a coin the same as a token. Not quite…
An ICO is an Initial Coin Offering. It is the same as a token sale in that it is the chance to pre-invest in something that intends to become a live entity. However, this is where the similarity ends. If you read our article entitled “Is Ethereum Limited Like Bitcoin?”, you’ll learn that Bitcoin is a bit like gold. It operates as a store of value and that is its only functionality. Investors want to sit on it and watch it grow, then selling at the right time. An ICO is your chance to buy into an upcoming store of coins, whether they be Bitcoin or other altcoins that operate as a store of value.
A Token Sale or Token Launch refers to tokens generated using the Ethereum network. Ethereum tokens are generated by SCS’s (Smart Contract Systems) and are multi-functional. They are units of trading or representative of specific items for specific purposes, and the possibilities are almost endless.
On Bitrazzi, we’ll be reviewing upcoming ICOs and Token Sales. If we are talking about a specific niche – computer game trading, sportswear exchange, or whatever it may be, then it’s a token sale. If there is no particular niche, it’s an ICO.
What are the upcoming ICOs / Token Sales that excite you the most? Let us know!