A cryptocurrency is a digital currency based on cryptographic methods. It functions using the blockchain technology. Cryptocurrencies have no physical analogs and exist only in virtual space.
A token is a digital asset issued by a company to raise funds for launching and developing a project. Tokens may be accessed via specialized apps that require electronic signature.
Company tokens represent a company’s obligation to provide services, pay dividends, and/or grant other bonuses to a customer in exchange for invested funds.
A smart contract is a computer algorithm for execution and maintenance of commercial contracts based on the blockchain technology. Parties to smart contracts can exchange assets directly without intermediaries. The purpose of smart contracts is to provide higher levels of safety than traditional contractual laws and to reduce other transaction costs associated with entering into contracts.
ICO or Initial Coin Offering is a fundraising mechanism that provides for the sale of a company’s tokens for virtual/fiat currencies. ICO is a crowdfunding model: its participants finance a company’s development to gain profit in the future.
The term “Pre-ICO” indicates a period of time that precedes fundraising. Its task is to test the demand for the project, analyze community interest, and expand marketing budget before ICO starts.
It is a mechanism of raising funds for the implementation of projects, charity work, organization of events, support of businesses, etc. Crowdfunding is divided into 3 models by the type of remuneration offered to investors: no rewards (donations), non-financial rewards (see Kickstarter), and financial rewards (Crowdinvesting).