ITO vs ICO What is the difference?

ICO which stands for Initial Coin Offering has been the main topic in the 2017 and the first half of 2018 in the cryptomarket. This way of crowdfunding has found its followers and believers. However, there were plenty of projects that conducts ICO without a clear understanding of the token economy.

ITO is more about the tokenization than about crowdfunding. The term itself is standing for the Initial Token Offering. That means that the project not only collects funds from the private investors but also creates an infrastructure to use tokens inside the project itself. Such projects are usually more confident about their fundraising abilities and have a straight and detailed plan of using the token in their own project.

Moreover, there are some key differences in the process of token sale. Outer exchanges are usually involved in ITO. This exchange allows such projects to list their tokens on the exchange before the actual crowdsale and conduct more detailed and precise token sale campaigns with only confirmed investors involved. This allows the token issuing company to minimize the risks and become listed on the exchange right after the initial token distribution without additional restrictions. The price of the token will be then regulated by the exchange but not the project himself and express the relationship between supply and demand for this token.

BestRate is keeping up with trends and gives clients the opportunity to perform ITO using our exchange. The project can list their tokens on our platform and distribute it using our mechanisms. Moreover, this projects will be able to use our widget to make it even easier for investors to contribute.

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