The crypto currency market’s version of a stock market IPO is an initial coin offering (ICO). To fund the development of a brand-new crypto currency, program, or service, a business may choose to host an initial coin offering (ICO). Interested investors can buy into an initial coin offering to receive a new crypto currency token issued by the company. Either this token represents a stake in the firm or project, or it has some usefulness associated with the company’s product or service.
The first step is to plan the layout of the coin. ICOs can be structured in a few different ways, including when a crypto currency project wants to raise money through an ICO, the project organizers. A company can set a specific funding goal or limit, which means that each token sold in the ICO has a preset price, and the total token supply is fixed; an ICO can have a static supply of tokens and a dynamic funding goal—this means that the amount of funds received in the ICO determines the overall price per token, some ICOs have a dynamic token supply but a fixed price, meaning that the amount of funding received determines the supply.
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