Token sales is a method of selling participation in an economy, giving investors access to the features of a particular project starting at a later date.
Bitcoin produces “coins”. Ethereum generates “tokens”. A “Token Launch” is an Ethereum thing. An “ICO” is a bitcoin/altcoin thing. Most projects that are like bitcoin uses bitcoin to raise funds with ICOs while those that are based on ethereum uses token sale.
With ICOs investors become share holders while token sales just give you the opportunity to participate in a block chain project earlier as an investor.