ICO vs IPO

There are similarities and differences between ICO and IPO (Initial Public Offering) on ​​the stock market. Just like an IPO, the company sells several shares in order to generate fresh funds to help with the company's operations.

In ICO, new coin companies need money to operate the company. Therefore, the company sells some shares of the new coins to investors.

In an IPO, what is offered is a share of shares in the company, while in an ICO what is offered is a share of the total coins in circulation.

The new coin company will notify the total number of coins that will be in circulation. Then during the ICO period, investors will bid on how many coins they want to buy at a certain price.

After the ICO period is over, new coins will be released to the public. The general public can buy the new coins for transactions or investing. If the price after release continues to rise, then ICO investors will make a lot of profit.

The risk of loss in an ICO is very high. It could be that after the ICO period is over, the company immediately goes bankrupt or the coins don't sell. Usually ICO participants are people who already know the risks of profit and loss in investing in new coins.