Hello,
Which do you prefer, an ICO or an IPO, and why ?
Personally, I've mixed views.
An IPO offers the investor shares in the business, and the possibility of being able to influence future decision making at the company. However, IPO's are expensive for the companies raising funds as they usually need to bring in Brokers / Investment Houses etc. They also don't tend to suit the very small investor, given minimum transaction limits, costs as a percentage of a small investment etc.
ICO's do not offer the investor the opportunity to have a share of the business, or influence decision making, but they do in theory offer the investor the opportunity to share in the long term success of the business (subject to the coin being brought into widespread use, with demand for the coin increasing etc.). ICO's suit very small investors, as both transaction costs and minimum investment limits are low. Under normal market conditions, it may also be much simpler and faster to sell a coin, than a share (but in times of crisis, liquidity might quickly dry up in some of the cryptocurrency markets).
As a rule of thumb, cryptocurrency markets are far more volatile than stock markets, but that offers potential for quick gains, not just quick losses.
So, which one do you prefer and why ?
Which do you prefer, an ICO or an IPO, and why ?
Personally, I've mixed views.
An IPO offers the investor shares in the business, and the possibility of being able to influence future decision making at the company. However, IPO's are expensive for the companies raising funds as they usually need to bring in Brokers / Investment Houses etc. They also don't tend to suit the very small investor, given minimum transaction limits, costs as a percentage of a small investment etc.
ICO's do not offer the investor the opportunity to have a share of the business, or influence decision making, but they do in theory offer the investor the opportunity to share in the long term success of the business (subject to the coin being brought into widespread use, with demand for the coin increasing etc.). ICO's suit very small investors, as both transaction costs and minimum investment limits are low. Under normal market conditions, it may also be much simpler and faster to sell a coin, than a share (but in times of crisis, liquidity might quickly dry up in some of the cryptocurrency markets).
As a rule of thumb, cryptocurrency markets are far more volatile than stock markets, but that offers potential for quick gains, not just quick losses.
So, which one do you prefer and why ?