How does an ICO differ from a Token Launch?
Understand the difference between an Initial Coin Offering (ICO) and a Token Launch
“ICO” is a common phrase relating to crypto-token launches on the Ethereum platform. But it is evident that there is a conceptual difference between cryptocurrencies and tokens. Some cryptocurrencies can only be mined, while others are released during an Initial Coin Offering.
An Initial Coin Offering uses a crowdsale event to fund a project or service. The company creates a new cryptocurrency and sell these coins to investors who will fund the startup.
Some of these other types of crypto-coins have survived and some have become obsolete over time, depending on the market value and the progress made by an ICO. The Blockchain is a decentralized ledger handling cryptocurrency transactions. Satoshi Nakamoto revolutionized the dealing process of businesses through the introduction of bitcoins.
But there are limitations to digital coins. Ethereum can act as a digital currency like Bitcoin. However, it can do much more more, as it is a highly programmable entity with the ability to build complex decentralized applications and smart contracts.
The only use of many digital coins is really as a store of value or for exchange purposes. There is no other specific dynamic functionality in a lot of coins.
Tokens differ in concept in comparison to coins. It possible to store complicated, multifunctional value in tokens.
A Smart Contract System is what generates multi-functional and programmable ERC20 tokens. Generic coins are “offered”, tokens are “generated”.
Thus, a token launch on the Ethereum platform describes a new token creation event
So, a coin might be absolutely useless while tokens can do much more.
Let’s go through the 4 primary things that Singular-DTV SNGLS tokens can represent.
Property: SNGLS tokens express intellectual property inside a programmable token and pertain to their proprietary uses.
Utility: SNGLS’s tokens can function as utility tokens. What this means is that SNGLS tokens are required to operate any of the functions of the SingularDTV ecosystem. Over time, because of its various uses the SNGL token generates more value and utility for its holders.
Income/Rewards: Singular-DTV tokens can be used to manage rewards and income through user participation in the ecosystem.
Fungibility: This means that SNGL tokens are mutually interchangeable.