Blockchain science: Understand the difference between public and private offerings in the currency circle in one article

Cryptocurrency public offerings and private placements are two different financing methods used for cryptocurrency project financing. Private placement is compared to public placement. Public placement is a financing behavior in which blockchain projects use their own virtual currencies in exchange for virtual currencies commonly used in market circulation. Private placements must target specific groups of people to raise funds and cannot be publicly advertised. As a newbie in the currency circle, it is still difficult to understand the difference between public and private offerings in the currency circle. In fact, there are major differences between the two in terms of investment thresholds, investment objects, and income potential. The editor below will tell you in detail.

The difference between public offerings and private placements in the currency circle

The difference between public offerings and private placements in the currency circle is mainly the difference in definition, goals, supervision and returns, as follows It is a specific analysis:

1. Definition and concept

Public fundraising, simply put, is a fundraising method open to the public. Anyone can participate, usually through a public platform. Private placement, on the other hand, is a financing method that targets specific groups (such as large investors or specific partners) and is more closed and private.

2. Fund-raising goals and scale

The goal of public fundraising is usually to raise as much money as possible because it is aimed at the general public. Private equity, on the other hand, pays more attention to the efficiency of fundraising and the quality of investors raised. As a result, private placements are often relatively small in size, but raise funds quickly and have high investor awareness.

3. Transparency and Supervision

Due to its open nature, public offerings usually require higher transparency, including the use of funds, project progress, etc. Private equity may pay more attention to confidentiality, but this also means that investors need to have higher trust in the project side. At the same time, there may also be differences in the regulatory intensity of public offerings and private placements in different countries.

4. The role and returns of investors

In public offerings, investors are usually just providers of funds. What they expect is the return they will receive if the project is successful. In private equity, since investors are often more professional, they may play a more important role in the operation, management and even decision-making of the project, and they also expect higher returns.

Which one is better, public offering or private offering in the currency circle?

Public offerings and private placements are both ways for cryptocurrency projects to raise funds. They each have their own pros and cons and are suitable for different situations and investor needs.

Public fundraising is open to anyone and anyone can participate without any threshold. The investment threshold for participation is usually low, and investors can purchase tokens according to their own wishes. Investors can freely choose the quantity and time of purchase, which is relatively flexible. There are a large number of public offering projects, and investors have more choices and can choose projects according to their own interests and investment strategies.

However, there are high investment risks in the public offering market, project quality is uneven, and there are risks of ZP and fraudulent projects. Its market lacks effective supervision, and investors' rights and interests are insufficiently protected, making them vulnerable to bad projects and market manipulation. After the public offering of tokens is listed, market liquidity may be insufficient, which may easily cause large price fluctuations.

Private equity projects usually undergo strict screening and review, and the project quality is relatively high. Compared with public offerings, private placement projects have higher information transparency, and investors can more easily obtain project background and information. The investment threshold for private equity projects is usually higher, and investors usually need to meet certain conditions or possess certain qualifications.

The investment threshold for participating in private equity projects is usually relatively high, and you generally need to meet certain conditions or commit to a certain amount of investment. There is information asymmetry in private equity projects, and some projects may not be disclosed to the public, making it difficult for investors. After private equity project tokens are listed, market liquidity may be poor and transaction volume may be low.

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