ICO VS IPO - What's The Difference? | Blockchain Central

The video explores the differences between Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs). IPOs involve selling company shares to the public, offering ownership and potential dividends, and are heavily regulated. ICOs, on the other hand, involve selling new cryptocurrency coins, are less regulated, and do not offer company ownership. ICOs are likened to Kickstarter campaigns for blockchain projects. The video highlights the risks and benefits of both, noting that ICOs are riskier but can offer higher returns. It concludes by stating that both methods aim to raise funds, with ICOs suitable for early-stage projects and IPOs for mature companies.

What is the primary purpose of an Initial Public Offering (IPO)?

• To sell early access to a new currency

• To allow a company to go public by selling shares

• To raise funds through a Kickstarter campaign

• To distribute free coins to potential users

Which company held the first IPO in history?

• Amazon

• Dutch East India Company

• Ethereum

• Mastercoin

What is a significant risk associated with ICOs compared to IPOs?

• Potential for fraud due to less regulation

• Guaranteed dividends

• Lack of voting rights

• Higher regulation

How do ICOs typically raise funds for project development?

• By selling company shares

• By offering coins at a discounted price

• By issuing bonds

• By providing loans

What is a creative method used in ICOs to increase coin distribution?

• Dividend payments

• Share buybacks

• Stock splits

• AirDrop

Which type of offering is more suitable for young startups?

• Venture capital

• Bond issuance

• ICO

• IPO

What is a key difference in ownership between IPOs and ICOs?

• ICOs provide voting rights

• IPOs offer company ownership and voting rights

• ICOs guarantee dividends

• IPOs provide ownership of coins