What are Tokens ?

An Initial Coin Offering (ICO) is a means of crowdfunding centred around cryptocurrency, which acts as a source of capital. In an ICO, the project creator sells a quantity of the crowdfunded cryptocurrency to investors in the form of “tokens”, and investors may purchase “tokens” with legal tender or other cryptocurrencies (such as Bitcoin or Ethereum). These tokens are promoted as future functional units of currency when the ICO's funding goal is met and the project launches. ICOs allow startups to avoid costly regulatory compliance and intermediaries, such as banks and financial institutions.

An Initial Exchange Offering (IEO) is similar to ICO. However, the main difference between ICO and IEO is the presence of a third party. The Exchange. The sale of the tokens is on an exchange platform. Thus bringing many other players/investors into the game. The funds are not sent through a smart contract as they are transferred in an ICO. They are done through an exchange.

Security Token Offering (STO) is similar to public offering, in which is the assets are tokenized into digital security. Unlike ICO and IEO, security tokens are digital, liquid contacts for a fraction of any asset that ready has a value such as gold, real estate, corporate stocks. The ownership of a security token has a legal certification in which the data are recorded in the blockchain.