The initial token offering (ITO) caters to a similar function to that of the initial coin offering (ICO). But instead of solely focusing on cryptocurrency, ITOs center around tokens that have proven intrinsic utility.
The utility includes allowing the investor seamless access to the platform via subscription, or simply offering exclusive services. Something as simple as offering a lower trading fee can be a prime example of an ITO.
ITOs emphasize more on tokenization, as compared to the traditional approach of crowdfunding. Although, there are several instances where both the term token and coin were used interchangeably.