Comparison ICO vs. IPO

One may consider an ICO as the “crypto-equivalent” of an IPO. But instead of issuing shares, digital assets (Coins/Tokens) are being publicly offered within the framework of this virtual flotation. On the one hand, Tokens may securitize company shares or profit participation. But mostly, they are designed as vouchers or options that offer access to future services. With an ICO no prospectus is needed. Instead, a whitepaper, which explains the future business model, is issued. Like shares Coins/Tokens are tradeable.

An IPO ensures full access to the capital market. It is highly regulated and therefore has a higher confidence level. However, the implementation of an IPO is quite expensive and time consuming.

An exception is the Instant-IPO process. An Instant-IPO is an alternative public offering and can be considered as an express access to the capital markets. In short it describes the contribution of a business operation to a stock listed shell company. Compared to a classical IPO this type of listing is less cost-intensive and time consuming and subjected to regulations to a lesser extent. Like a traditional IPO, the Instant IPO gives full access to the capital markets. Our ICO/IPO-agency has optimized this process over the years.

The ICO process is characterized by low expenditures of time and costs as well as a low level of complexity due to a lesser extent of regulations. Therefore ICOs are particularly adequate to fund ideas or companies at a very early stage of their lifecycle.

Overview, Comparison ICO vs IPO vs Instant IPO from the entrepreneur's point of view:

ICO vs IPO

ICO

IPO

INSTANT IPO

Cost / time

low effort

high effort

considerably lower than IPO

Market segment

crypto world

capital market

capital market

Complexity

low

high

considerably lower than IPO

Documents

whitepaper

prospectus

prospectus

Issue of

coins/token

shares

shares

Access for investors

worldwide without limitation

international, restricted by regulations

international, restricted by regulations

Acquired capital

mostly crypto currencies

FIAT- currencies

FIAT- currencies

External influencing factors (banks, lawyers, boards etc.)

low

high

low

Regulations

low

high

lower than IPO

Limitation by legal form

no

yes (AG, KGaA)

yes (AG, KGaA)

Form of financing appropriate for

young, innovative ideas, projects, companies

well-established companies

aspiring companies

Public acceptance

increasing

high

high

Implementation period

weeks

month

days

Increases the level of awareness

yes

yes

yes

Refund of acquired capital

no

no

no

Covers higher financing requirements

yes

yes

yes

Overview, Comparison ICO vs IPO vs Instant IPO from the investor's point of view:

ICO vs IPO

ICO

IPO

INSTANT IPO

Stage of the project/ company life cycle to invest

early stage

date of IPO

early stage (the date trading starts)

Hope of investors

multiplication of the invested volume

positive development  above market interest rate

above-average share price increase as result of the restructuring

Fungibility

cryptocurrency exchange

recognized stock exchange

recognized stock exchange

Trading risks

low liquidity/trading volume and high volatility

lower

lower

Complexity of investment

high

low

low

Risk of market segment

high

regulated

regulated

Risk of safekeeping

high (crypto-wallet)

low (bank deposit)

low (bank deposit)

Systematic risk

high

low

low

Technical risk

high

low

low

Company transparency

increasing

high

high but lower than IPO

Regulation

little

high

regulated

Political risk

regulation, prohibitions

low

low

Services

  • ICO & IPO
  • Whitepaper & Sales Prospectus
  • Placement of tokens & Placement of shares
  • Contact details

    Instant IPO SE
    Tel. 089 54578552
    E-mail: info@instant-ico.de
    www.instant-ico.de

    Disclaimer

    The contents of this website were written with due diligence and by the author’s best knowledge. We can be held liable only by general laws, [...]