What is ICO?
ICO is a new way to fund projects. The scheme is pretty similar to the traditional one with shares and has exactly the same purpose – raise some money to grow the business. But instead of shares, investors or people who just want to support the project buy ICO coins (also known as altcoins) or tokens via Initial Public Offering (IPO).
Both coins and tokens are cryptocurrencies but they vary. Before we continue moving forward let’s find out what’s the difference between crypto coin and token:
As it was mentioned, tokens and coins differ. Coin is a separate currency that has its own blockchain. So, to create your own coin, you have to develop own blockchain from scratch. The examples of such coins are Ethereum, Ripple, Omni, and others.
What is token? This is a category of cryptocurrency that functions on the top of a blockchain and hasn’t its own. So, it takes much less time for a development team to build a token based on existing blockchain solution than to create one on their own.
ICO crypto types Coins and tokens: Difference Further in the article, I will use the term ‘tokens’ to avoid saying ‘coins and tokens’ all the time. We hope that we’ve managed to cover all questions related to ‘what is initial coin offering’ and ‘cryptocurrency coin vs token’.