Since the introduction of digital currencies, financial sectors around the world have been re-thinking and perceiving a decentralized way of conducting transactions. This platform continues to grow and new applications for this system are constantly being developed. There is a growth in both the technology industry and the financial markets. With the fact that this is a fast-growing industry, many people are trying to find new ways to invest in or own these cryptocurrencies. There are also companies that seek to raise funds for the growth and operation of the networks and to make a profit. For this purpose, Initial Coin Offerings (ICO) have been introduced in most Blockchain networks.
As part of the initial coin offering, the networks offer different and ever-changing forms of tokens, depending on the application and the network setup. These tokens can be subdivided into utility tokens, security tokens, and equity tokens.
Ethereum Blockchain’s Smart Contracts have a special application as an Equity Token Offering. Thus, shares can also be offered in an Initial Coin Offer. Therefore, this is called Equity Token Offering (ETO).