What is ICO?

Initial Coin Offering is a method of attracting investments when a company issues and sells tokens or coins to finance its project. Investors' investments allow startups and projects to realize their ideas and developments.

The emergence of ICO

ICO was made possible by the development of blockchain technology and the emergence of cryptocurrencies. It has provided a new and efficient way to finance projects, bypassing traditional banking and financial institutions.

Varieties and Analogies of ICOs

In addition to the classic ICO, there are other methods of attracting investments, such as SHO, IFO, IGO and INO. Each of them has its own features and advantages, but the common goal remains to raise funds for the development of the project.
1️⃣ STO (Secure Token Offering)
An STO is similar to ICOs. But unlike the latter, investors' protection is ensured. Indeed, STOs must meet regulatory requirement
2️⃣ SHO (Strong Holder Offering)
The chance of getting tokens depends on the amount of funds in the wallet, the more there are, the higher the chance of getting tokens. This type of tokensale is held on DAO Maker.
3️⃣ IGO (Initial Game Offering)
IGO is practically the same as IDO. The difference is that they are conducted by projects from the GameFi sphere. They are mostly held on the GameFi platform.
4️⃣ INO (Initial NFT Offering).
INO differs from IDO in that the tokensale is held for NFT.
5️⃣ IFO (Initial Farm Offering)
Investors receive tokens through the provision of liquidity in the pool, i.e. they invest certain tokens in the pool and receive new tokens in return. Such tokensale is conducted on decentralized exchanges.

Pros and cons

Let's take the advantages and disadvantages of specific methods point by point, so that you have a clear idea about all three types of tokensales.
➡️ ICO

• Most often the conditions for participation are simple.
• There is a high probability that the token will have nowhere to sell after purchase.
• High probability of getting scammed.

➡️ IEO

• High level of security.
• Projects with great potential for long-term development are placed.
• Centralization and lack of control over own funds.

➡️ IDO

• Large selection of projects.
• Coin can be traded immediately after the end of the sale.
• Relatively low level of security.
• Need to get on the whitelist.

➡️ SHO, IFO, IGO and INO can be referred to as varieties of IDO, so their pros and cons are similar.

Impact on the Cryptocurrency Industry

The advent of ICO has had a huge impact on the cryptocurrency industry. It has attracted many new projects and investors, spurring innovation and technology. However, as the popularity grew, so did the problems associated with fraud and low quality projects.

Moving away from ICOs

Recently, companies are increasingly abandoning the classic ICO in favor of other fundraising methods, such as STO and IEO. This is due to the desire to provide a more transparent and secure environment for investors, as well as the growing regulation of cryptocurrencies.
ICOs and their counterparts have had a significant impact on the financial market, driving innovation and the development of new technologies. Despite the challenges they have caused, they remain an important element of the financial landscape, contributing to the development and modernization of the economy.