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Comparison

ICO vs IDO vs STO: what's the difference?

Direct answer

An ICO is a direct token sale by the project—flexible but higher trust risk. An IDO launches on a DEX with immediate liquidity and community access. An STO issues regulated security tokens backed by real assets or equity, requiring securities compliance. IEOs (exchange-managed sales) sit between ICO and IDO with centralized vetting.

Details

ICOs and IDOs suit utility-token launches with lighter regulatory framing, but jurisdiction matters: many tokens are classified as securities regardless of label. IDO platforms cost $15K–$80K for MVPs; full launchpads $80K–$300K+.

STOs and RWA offerings require legal structuring (SPV, Reg D/S/A+, MiCA), transfer-restricted tokens (ERC-3643/1400), KYC/AML, and qualified custody—adding $50K–$200K+ in legal and compliance before engineering scales.

Pick the rail that matches your asset and investor base: utility/community launches often start IDO; real estate, funds, and equity-like rights typically require STO/RWA architecture from day one.

Marshall builds launchpads, IDO platforms, and compliance-native RWA/STO rails. Scope the right offering type at marshallinfotechs.com/crypto-launchpad-development.

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