How Does a Reverse ICO Differ from a Traditional ICO?

A traditional ICO is typically launched by a new startup with no existing product or user base to raise funds for development. In contrast, a reverse ICO is conducted by an established company that already has a proven business, revenue, and customer base.

The key difference lies in the maturity and operational history of the issuing entity. Traditional ICOs fund a concept; reverse ICOs decentralize an existing operation.

This distinction often affects investor confidence and regulatory scrutiny.