The terminology of the cryptocurrency circle that all veteran investors know
Common phrases in the cryptocurrency circle: ICO, IEO, IFO, IDO, TOKEN, candy, air coin
1. ICO——(initial cion offering, first token offering) is a crowdfunding activity that is carried out by issuing virtual tokens. It can be simply understood as an IPO (initial public offering) in the digital currency community. ICO began in 2013 and was originally limited to the development of projects that applied blockchain technology, that is, small-scale token financing was used for technology development, and the issued tokens were used as an incentive mechanism for "coder rewards". However, since 2017, more and more projects that have nothing to do with blockchain technology development have also raised funds through fundraising, resulting in frequent chaos and rapid accumulation of risks.
2. IDO--Initial Digital Assets Offerins The first digital asset offering. The literal meaning is almost the same as the initial token offering of ICO. However, the business logic behind the two is different.
3. IEO - the model of issuing tokens on exchanges (initial exchange offerings), such as bigone's big, Binance's bnb, Huobi's ht, and bigone's 40% of monthly profits for repurchase.
4. IFO - (initial fork offerings) refers to the issuance of tokens based on forked Bitcoin and other mainstream virtual currencies. The essence of "fork" is that the virtual currency community has differences on the future development of tokens, and two new chains are generated from one blockchain. The birth of these forked coins is not essentially based on community conflicts, but more intended to gain benefits through pre-mining during the fork process - that is, the development team retains a part of the tokens themselves;
5. Candy - Candy in the blockchain Candy in the blockchain refers to virtual coins that are distributed free of charge by the project party for promotion. Li Xiaolai's Candy.ONE candy is a joint issuance of tokens from different project parties. It is considered to be similar to the ETF in the blockchain world, and its price can measure the prosperity of the industry.
6. Air coins - coins without any practical application support - have become a common problem of ICOs. Regulatory authorities in various countries are introducing measures to restrict air coins, but there are too many people with low risk resistance and who want to get rich quickly.