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What is a Token Sale?

Initial coin offering refers to the process of selling tokens to the public to raise capital for the network being built. Though touted as the digital world’s equivalent of an IPO, the two differ significantly. While an IPO transfers a company’s ownership from private to public hands, an ICO is an unregulated sale whose only sense of quantification is the potential value of the project or concept that the crowdsale hopes to fund. This probably is the reason ICOs are a lot similar to venture capital.


Types of Token Sale

Despite being relatively new, there are more than a handful of methods that have been explored with various token generation processes that have been concluded in the recent past. These include:

  • Capped sale on a first-come-first-served (FCFS) basis
  • Uncapped token sale
  • Capped auction
  • Uncapped auction
  • Capped token sale structure with parcel limit
  • Capped token sale structure with redistribution
  • Security token sale
  • Utility token sale
  • Centralized token sale
  • Decentrazlied token sale



Source: https://cryptorated.com/icopedia/best-ico-structure/


S
St3rling is the author of this solution article.

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