ICO - Is there a definitive difference between a new coin and a new token?

megget

member

Activity: 140

Merit: 12

Blockchain Identity Verification

Quote from: Golfmad on February 13, 2018, 08:22:14 AM

I been wondering what everyones take is on what classes as an ICO.

For example:

I download an already established coin from Github and then convert it to be used for my purposes
I create a new project and token i.e. Cryptocitties on top of the Ethereum platform.

Technically they are do different things, 1 is a coin and 2 is a token. Does the term "ICO" cover both of these when you are trying to promote your new project?

The main difference between coins and tokens in their structure: coins are separate currencies with their own separate blockchain, while tokens act on top of the blockchain, which facilitates the creation of decentralized applications. The main purpose of the coin is to fulfill the role of money: to be a unit of calculation, a store of value and a means of transfer. Tokens offer functionality exceeding digital money. They can be used to conduct community voting on key business decisions or even technical changes on the platform.

Golfmad

newbie

Activity: 19

Merit: 0

I see what you mean but Im wondering what really classes as a "coin"?

I think Musicoin for example has a blockchain to itself. Where as Cryptokittes are simply tokens that are build on top Ethereum.

Would you class both of these as coins? I just trying to understand how rigid the word "coin" is in ICO.

cryptomngr

member

Activity: 182

Merit: 10

Morelikely if a project is still in an ICO phase it still to be called as tokens,which is being bought thru pre-ICO,ICO,private sale,public sales of these ICOs the main aim is to raise funds to support the developers to pursue the development of the project.If the tokens were sold out and when the project is already accepted in any exchanges that is the time the tokens would be called an official coin,correct me if i am wrong Grin

.