[Ethereum] the difference between ICO and Crowdsale

crowdsaleico

I'm confused a bit between ICO and Crowfunding sale. ICO also used to collect funds from investors like Crowdsale. Ethereum provide both options run an ICO or Crowdsale, then what is the difference between two?

Please help me to understand the difference.

Best Answer

It’s really hard to tell the difference, since many projects in attempt to bypass legal regulations for the ICO start to call their fundraising campaign crowd sale instead of ICO.

ICO can include pre-sale and public sale, during both phases project raises funds and emits tokens. On the other hand crowd sale is more like public sale phase.

By the way, there can also be pre-ICO, which is more about raising funds for project’s ICO and without token emission (but with some agreement). Pre-ICO is not Initial Coin Offering, because if it fails there won’t be any token emissions or transfers.

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[Ethereum] Best practices on Token ICO launch

I can add to your list the Open Zeppelin. It contains some secure contracts with best practices. We will use some of their contracts during our project's called "Jincor" ICO

Returning to your question I would like to say that there are no "The Right Way" of doing ICO from technical side. Just because it's very different from business side) There are some best practises which you can find on Github.

I'd also like to suggest you to go through the source code of contracts of ICO's you personally like.

[Ethereum] what is the difference between hard cap and soft cap in ethereum ICO

A hard cap is defined as the maximum amount a crowdsale will receive. Most projects set a very high cap that is unlikely to happen. Only very famous projects like Status or Brave browser have reached its hard cap.

contract crowdsale {
    uint public maximumEther;
    uint public totalEther;

    function () payable {
        // Do not accept payment if recaudation is above maximumEther
        if (totalEther + msg.value >= maximumEther) throw;

        // Emit tokens
        totalEther = totalEther + msg.value;
    }
}

A soft cap is the amount received at which your crowdsale will be considered a success. It is the minimal amount required by your project.

If you do not reach that amount during the ICO then you will allow the investors to retire their apport.

Best Answer

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[Ethereum] Best practices on Token ICO launch

[Ethereum] what is the difference between hard cap and soft cap in ethereum ICO

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