“TIDES FOR SALE OF HEADS: Understanding the most powerful asset in the crypto”
In the world of cryptocurrency, a sale of tokens is delimited as a crucial step in the growth and adoption of a new project. For many projects, this event marks the start of a highly anticipated fundraising campaign which can catapult them to consumer success.
But what exactly do we mean by a “sales token”? In simple terms, it is an auction system where a developer or a company collects investor funds in exchange for tokens, which represent the ownership and participation of the project. This mechanism allows developers to obtain necessary funding to develop their projects while providing liquidity to other investors who are ready to buy these tokens.
Such an example of a token sale is the Ethereum 2.0 upgrade, where the development, the DA (now known as Ethereum), has raised more than $ 18 million from investors in exchange for its token native ether, eth. This substantial quantity of funding has enabled the development of a more scalable and evolving Ethereum protocol, which has since undergone significant upgrades.
Another notable example is the liquidity pool of the decentralized financing protocol (DEFI), composed. In 2020, Compound collected an astonishing $ 85 million in its initial offer of coins (ICO), largely thanks to tokens sales on platforms like Binance Smart Chain. This influence of capital has made it possible to become one of the largest protocols in the world.
Regarding a liquidity pool, the total offer is the main consideration for investors and users. In other words, how many tokens will be available throughout the life of the project? The more token there are, the greater the potential value of these assets.
For example, when we examine the current total ether offer on the Ethereum network, it amounts to around 130 million parts. This significant quantity of offer has led to a very volatile price in recent years, with the negotiating ether at almost $ 4,000 per room at its peak in November 2021.
On the other hand, the total offer of Binance parts (BNB) is currently about 64 billion parts, which indicates that there are more than 6.5 billions of potential users ready to buy and use these tokens .
It is essential to note that the total food should not be confused with the supply in circulation, which refers to the number of tokens in active circulation at any time. The total offer takes into account all the tokens that exist throughout the life of the project, including those which are locked up or reserved for future use.
In conclusion, token sales play an essential role in the growth and adoption of cryptocurrency projects, offering investors a chance to guarantee funding while providing liquidity to other stakeholders. When it comes to understanding the mechanisms behind tokens sales, such as the way they work, the types of projects they support and the total quantity of supply by implying, it is crucial to have an in -depth understanding of this complex concept.
While we continue to sail in the constantly evolving landscape of cryptocurrency, it will be essential for project developers, investors and regulators to closely monitor these critical aspects of token sales.
