INITIAL TOKEN OFFERING (ITO)

Similar to an Initial Coin Offering (ICO), an Initial Token Offering (ITO), sometimes also called an Initial Cryptocurrency Offering, focuses on the offering of tokens with either proven or unproven, innate utility through a software or usage in an ecosystem. 

An ITO is seen by the industry as a way to raise capital through the use of existing blockchain platform like Ethereum. This is done to create and record the distribution of tokens as a way of investing in a start up. 

In an ITO, the investment terms of the tokens are pre-programmed into the blockchain so as to create a Smart Contract. 

Instead of what is traditionally done, (that is stocks being listed on an exchange) investors are duly offered digital assets or tokens whose eventual price and usability are tied to the success of the financed project.

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