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Types of Tokens Offered in ICO


Types, Types of Tokens Offered in ICO

ICOs gained popularity in 2017 offering a new way to raise money.

Released on Thursday, July 12, 2018, 8:00 PM ET
by Email Russ UrbanContact SpeculatingCoins

Pittsburgh, PA (SpeculatingCoins) - ICO or Initial Coin Offerings gained popularity in 2017 and it’s a new way for businesses and projects to raise money. During ICO, tokens are offered as an investment platform (stock). There are three basic forms of investment tokens:

1. Voting Tokens: Investors will have a say in business operations
2. Equity Tokens: Investors will obtain non-voting shares, just like traditional stocks
3. Dividend Tokens: Investors will obtain something comparable to corporate bonds

There are other token variants that can be offered during an ICO:

1. Loyalty Tokens: They are used to purchase services, such as airline miles and incentivized certain behaviors that business want to have. Investors can use loyalty tokens for referring friends to specific events and provide affiliate marketing services.

2. Discount Tokens: Discount tokens will allow the use of promo codes that are traceable

3. Membership Token: There are different sort of things that can be used for membership token. Blockchain hotel is one good example for the implementation of membership tokens.

4. Service Tokens: These tokens can be used on specific platforms and they can be easily traded. Ethereum is popular for its service tokens, known as Ether, that can be used to power various applications.

5. Preorder Tokens: Preorder tokens allow for reservation of new things and they can be purchased at any time.

There are many benefits that tokens can give to investors and ICO offerers. They are suitable for any project of varying size that looks for funding. If you lose interest on an ICO, tokens can be readily sold and buyer’s remorse can be kept minimal. Investment tokens can be seen as securities, when raising money from investors in the United States, you will be put under the purview of the SEC. Until the ecosystem is fully developed, every token always starts out as a security.

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⇒ About the Author of this News Article:

Russ Urban sees tremendous similarities and parallels between the stock market and the cryptocurrency market. Most cryptocurrencies are not just a form of "currency", there are teams and rapidly growing products and services behind several coins, much like behind stocks. Russ has been following the stock market for over 18 years and holds a Bachelor's Degree in Finance. From a young age, he watched CNBC with a keen eye and became obsessed with the market and technology. Russ Urban has written hundreds of stock articles and picks through the years since he founded, Inc. in 2006 and holds strong faith in the power of the markets and capitalism.