In this episode Aviva, is going to cover the basics on how to get involved in different crowdfunding methods, and how to find out which crowdfunding campaign is a SCAM. She’s giving us an overview what’s the difference between Initial Token Offering (ITO), or Initial Coin Offering (ICO). the purpose of this podcast is to give you the right tools and tips, so you can make your own research and understand different projects better.
ICO/ITO is a new way to crowdfund your company, where new businesses can ask you to invest in them, and in return, you can have tokens that represent their project or company.
Utility tokens represent future access to a company’s product or service. The defining characteristic of utility tokens is that they are not designed as investments.
Security Tokens, on the other hand, can be presented as the equity of the company. What makes a “security token” a security? This means if a company is paying out dividends for their investors from the profits they have created, then the token is classified as a security.
What happens after the ICO/ITO crowdsale? After the crowdfunding campaign these tokens will end up going on to the crypto exchanges where people can trade them, they can also hold on to them if they believe in the future of the company, and hope for the tokens’ price to surge in the future.
To get a more detailed overview on how to participate in the right crowdfunding campaigns, and how to not get scammed along the way.
Got a question? Write down in the comments!