Test Your Knowledge
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1. What is one of the key features of an Initial Coin Offering (ICO)?
A) It requires identity verification for all participants.
B) It is decentralized, allowing projects to conduct fundraising independently.
C) It is highly regulated and subject to government oversight.
D) It guarantees high returns for early investors.
2. How does an Initial Exchange Offering (IEO) differ from an ICO?
A) IEOs are more decentralized than ICOs.
B) IEOs are conducted on decentralized exchanges.
C) IEOs are backed by the credibility of centralized exchanges, reducing the risk of scams.
D) IEOs do not require identity verification from participants.
3. What is one of the advantages of a Security Token Offering (STO)?
A) It is highly accessible and open to all investors.
B) It is backed by real-world assets, providing value stability.
C) It does not require regulatory compliance.
D) It offers immediate liquidity through decentralized exchanges.