Initial Token Offering (ITO)

ITOs are similar to initial coin offerings, but they have more of a focus on offering tokens that have intrinsic utility in the form of software or usage in an ecosystem. This makes them a more attractive investment opportunity for potential token buyers, as they can be sure that the tokens will have a use and will not just be speculative investments.

What Is an Initial Token Offering (ITO)?

An initial token offering (ITO) is a type of fundraising event that is very similar to an initial coin offering (ICO), but with some key differences. The main difference is that ITOs usually focus on issuing tokens that have some proven or unproven utility, rather than raising money for a new cryptocurrency.

An ITO is more like a sale of tokens than it is like a crowdfunding campaign. With an ITO, investors are given access to a platform or service in exchange for tokens. This could include things like lower trading fees on an exchange, or exclusive access to services within an ecosystem.

Tokens are different from coins in that they use an existing blockchain, while coins have their own independent blockchain. Many people use the terms interchangeably, but there is a key difference between the two. ICOs became less common after a number of projects were outed as scams, and others collapsed in value shortly after launch.