Buying tokens at ICOs, IEOs, ICOs
Seems to be some terms from high school chemistry textbooks, at first I thought exactly the same.
In a nutshell, all these 4 acronyms represent the initial sale of tokens (IST)
IST:
2) A certain allocation per person (how many tokens a person can buy)
... other factors are different for each type of IST
Before proceeding to the explanation of each of the acronyms, you should understand that there are 2 main types of exchanges in the cryptoworld:
1) Centralized (registration, KYC, charts and other stuff, a prime example of this type of exchange is Binance).
2) Decentralized or DEX (no registration, no KYC, no charts, no nothing, you just swap some coins and pay commission, no one can ban you, because exchange is decentralized, and it does not have, so to speak, their own gendarmes. Example - PancakeSwap or BiSwap)
Okay. Let's begin!
1. ICO - what is it?
You've probably heard about all sorts of stocks, funds, dividends, and all sorts of things. Well, in the world of securities, one of the types of income is participation in an IPO (you know? - great!). In two words, a public sale at a fix-price (five words came out). With the advent of crypto, this phenomenon has migrated to us, and there were ICOs, the menace of mom's wallets since 2017!
This is the sale of token on the website of the project or on the aggregator, which deals with the placement of ICO (not on the central exchange and not on DEX), so it is called Initial Coin Offering
The most popular aggregator for ICOs is coinlist.com
What is a coinlist? It is a thing that on average 2-3 times a month holds sale of tokens on its website. Among the most successful projects that appeared on coinlist are Flow (300 X at peak) and Casper (40 X at peak). Someone became a millionaire by verifying and buying a couple hundred dollars worth of tokens.
2. IEO - what is it?
Selling tokens on centralized exchanges. Usually a high entry threshold. An example of a permanent placement is the FTX exchange. The platform gives good tokens, but the conditions are quite difficult for a beginner who wants to get some profits.
3. IDO - what is it?
This is a more interesting thing. Absolutely everyone can participate! I've already mentioned this type of token sale in the paragraph about whitelists.
IDO - is TTP on DEX exchanges, that is Initial DEX Offering
Usually the scheme for IDO is as follows:
Announcement -> Filling of whitelist -> Drawing of places -> IDO itself -> Listing on DEX (usually the same day) -> Fixing of profit