For a company to be well established it has to make sure it is financially stable and strong. So for this to happen there has to be investors willing to invest in the idea and fundraising will take place.

There are 2 types of fundraising which we are going to take a look at

• Initial Coin Offering (ICO)
• Initial Public Offering (IPO)

What is IPO?

This is when private companies venture into a process where-by they will sale their stocks to the public, then later on the investors can trade those shares on stock markets.

What is ICO?

It is also the same process with IPO just that in this case money will be raised for a crypto currency and investors are given coins as a reward for their investment.

The Main Difference.

IPO

• Well regulated
• Dividends are paid monthly
• It has a track record

ICO

• No regulation
• Earning not guaranteed as it might flop
• No track records

In the ICO there is no guarantee that you will get a greater value as the coin might flop but in the event that the coin is managed properly you ill get richer jus like those who benefited from bitcoin when they invested in it. So for safe investments with track record and well regulated  IPO will be the best as it is less risky as compared to ICO.