The difference between an ICO and an IPO

Initial Coin Offerings are almost parallel to an IPO in terms of an investment vehicle. The only difference is that ICO’s are only taking the pros and not the cons of having an IPO.

Lets take a look at the cons of having an IPO:

-Company becomes required to disclose financial, accounting, tax, and other business information
-Significant legal, accounting and marketing costs, many of which are ongoing
-Increased time, effort and attention required of management for reporting
-Risk that required funding will not be raised if the market does not accept the IPO price, sending the stock price lower right after the offering
-Public dissemination of information which may be useful to competitors, suppliers and customers
-Loss of control and stronger agency problems due to new shareholders, who obtain voting rights and can effectively control company decisions via the board of directors
-Increased risk of legal or regulatory issues, such as private securities class action lawsuits and shareholder actions
via: IPO Basics: What Is An IPO?

An ICO can be put on secondary markets via cryptocurrency exchanges. The listing process varies, but most of the time we can see subtle hints of conflicted interest in the tips they provide forthe founders trying to enlist.

Here’s the article for listing onto Bittrex, an exchange responsible for over 540M USD worth of Volume per day:

Total BTC Volume = 63926.3019 or.. 530,519,636 US Dollars
Total ETH Volume = 37332.9397 or… 13,720,816 US Dollars
If your coin passes our compliance rules and you’d like to get additional marketing in our platform, we offer the option to spotlight your coin for 3.0 BTC.

Its not just Bittrex, there are trading competitions over at Binance, or a pay to enter solution like Cryptopia.

Since the Confido ICO managed to get away with 375K in their ICO scam, it may be time to do more due diligence on ICO’s that are going to list onto exchanges.

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