Intro to ICOs, How they Differ from IPOs & Why We MUST Be Careful with ICOs

ICOs are related to blockchain technology and IPOs are the classical style of raising funds where shares in a company are offered. The thing about ICOs is that they are viral, shareable and they are usually funded. For every amount of money put into a new project, they offer their total supply to reward you as a contributor.

Contributions are done using Bitcoin, Ethereum or fiat money in most of them. So, where the ICOs create digital tokens on a blockchain. Any company worth something can do this. IPOs are done by companies that have been operating for a while.

Sometimes, you will find that the companies with an ICO, do not even have a product to show you. Value is usually reduced to things like a whitepaper, proof-of-concept, black papers, and gold papers among others.

It is easy to see why you would need to be careful about ICOs. They are not as solid and proven as IPOs.