ipo and ico explanations and its differences

IPO (Initial Public Offering) . companies that enter the floor of the stock, sell the percentage of ownership of shares to the public in order to obtain funds for business continuity.The first IPO recorded in history was 1602 in which the VOC offered shares to the public.The VOC we know as kumpeni colonist is a Dutch company. In America, the IPO was first recorded in 1783 when the Bank of North America offered shares to the public.For hundreds of years the idea of ​​IPO is still in use. In the near future, it is likely that the ICO (Initial Coin Offering) mechanism will slowly replace the idea of ​​an IPO.ICO is a fundraising effort to build applications related to Blockchain and its implementations such as cryptocurrency, bitcoin, smart contract and smart ledger.ICO offers a number of tokens to investors that are usually valued by Cryptocurrency such as Bitcoin. These future tokens are expected to be of high value, depending on the success of the apps solving business problems.
There is no definite regulation to regulate ICO, but investors who believe in the future of blockchain usually dare to take risks.

For the conventional businessman, it may see this phenomenon as something strange, something that is difficult to digest, how can investors dare to put money to young people under the age of 30-40 years, not much business experience, network minimal and do not understand how the stock market , business, economy, market work ?. It must be the majority of scams, perhaps the most widely accused by a generation of senior businessmen 40-50s upwards.If technology can help ease and effective efficiency, compared with the old pattern, it is assured to be fast or sluggish everyone will choose an easier way. Although still immature, Blockchain-based applications provide the convenience of being Distributed databases: Data is stored in many nodes, not centralize, does not require many third parties, Immutable records, data that has been created / formed can not be replaced / deleted. Execution of transaction process can be executed by rule / algorithm as in example smart contract.

Examples of successful blockchain apps get funding from Initial Coin Offering
Ethereum.Ethereum is a blockchain implementation with smartcontract features. ethereum is Open source, many apps blockchain created based on framework ethereum. Earn $ 18 million when ICO. Ethereum introduces the DAO of a distributed autonomous organization that will act as a decision maker on projects related to ethereum. DAO is a formless organization. Members are those who give the first token ether when ICO is launched.

Iconomi https://ico.iconomi.net/ earn $ 10, 6 million
Open Fund Management, following the uber concept in the fund management industry, is located in the notorious city of Ljubljana, Slovenia.

Iconomy service users can manage digital assets in one platform: Digital managed assets such as Bitcoin, Ethereum, Ripple, Litecoin, Monero, Dash, MaidSafeCoin, NEM.

When a conventional fund management company manages stock, property, and foreign currency assets managed by humans, the digital version is submitted to the rule / algortima in the form of blockcain-based smartcontract. If I buy 1 BTC at the price of $ 800, then I can instruct to remove 1 BTC when the price in the position of $ 1,000 through apps that stuck to the smartcontract. The process will run automatically, without brokers and stockbrokers.


Will all ICO be guaranteed success?

of course not, there are some who are not successful and some are indicated scam.To get insight where potential blockchain startup, investor can subscribe to the news here http://icorating.com/ to gain insight into the current rating of each startup blockchain.Will in the future ICO (initial coin offering) replace IPO (initial public offering)?When blockchain technology enters the mature and stable period, many companies will choose the ICO method of obtaining funds, because of the convenience of blockchain technology, anyone can trade in buying the initial Token offered by the company when the ICO.Will ICO also slowly make conventional investments / venture capital change the strategy of turning money in the future? Shares or shares are proof of company ownership. On ICO, the proof of ownership is a number of Digital Tokens, which can be redeemed for other crypto currency assets. If this is the target is a number of shares to be resold in the future. but the stock is inflexible like Token on the ICO concept, is it better to buy digital tokens instead? to legalize the ownership of shares of the company required notary, accounting, taxes and so on, wah complicated really ..., compare with Token on the concept of ICO. Token is a cryptocurrency asset that is released to the public to be owned by a number of investors. All shaped digital, the deed shares in the form of smart contract or crypto currency.In ICO buyers can directly interact buy token prime without going through brokers stock broker / securities and no fee / commission paid. Will future stock brokers lose their roles? If the year 2016 yesterday, the public was surprised by the presence of online transportation that caused the conventional transportation business lost market and revenue. then it is certain this will happen soon, when blockchain-based applications cause business in the field of finance will experience problems displaced by the presence of new companies with blockchain technology.