Initial coin offering typically refers to selling tokens publicly to raise funds for the platform being built (which is one of the objectives of such an endeavor). Despite being relatively new to the limelight, there are a number of methods that have been utilized during various token generation techniques that were concluded in recent history. Apart from being carried out to raise funds for the platform to be built, what are the other goals of ICO token sales?
Several other objectives of token sales include:
Secondary Goals of ICO Token Sales
For The Distribution of Tokens Widely
The underlying regulations behind Blockchain are decentralization. Developers with an innovation that provides a solution affecting a broader portion or part of the populace may want their tokens distributed widely.
Guaranteeing That All Investors Will Have A Piece of The Action
Yes. As opposed to the idea of targeting buyers who have their funds ready, you might want to give every investor who is willing to be a part of the sale an opportunity to participate in it.
Raising The Capital Cap For The Network
Building a network comes with several costs and responsibilities. For instance, a shrewd developer will prefer raising the right sum to avoid holding extra funds than required.
Optimizing the Initiative
Apart from raising the capital cap, other important targets in an ICO should include the sale of tokens at market price. Token portions should be allocated accordingly. Determining the market price can be slightly technical, and since some ICOs leave this action to the contributors, it isn’t unusual to see the developer coming into play.
Overall, the primary goals of ICO token sales remains raising the required amount of capital to fund the platform. However, the growing interest in ICOs today somehow erases any concerns associated with the idea of attaining the capital cap.