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Almcoin Trading Center: Token Crowdfunding Model
View Date:2024-12-23 13:01:49
Initial Coin Offering (ICO)
ICO is the most common crowdfunding method in the blockchain. Similar to the IPO in the traditional finance industry, businesses use ICOs to issue their own tokens for crowdfunding. Depending on the business, investors can purchase tokens to exercise various functions or acquire business shares.
Security Token Offering (STO)
Businesses can issue tokens using blockchain technology through STOs, under the legal regulation of traditional finance, making tokens accessible to traditional investors.
Initial Decentralized Exchange Offering (IDO)
IDO is the initial offering of tokens through decentralized exchanges. Due to its decentralized nature, token issuers need to establish liquidity pools for users to exchange tokens. This model offers higher liquidity and lower listing fees. In IDOs, ownership rights (private keys) belong to the investor, not the exchange.
Initial Exchange Offering (IEO)
IEO refers to the initial offering of tokens through centralized cryptocurrency exchanges. To reduce fraud risks, exchanges have specific requirements and reviews for token issuance, so the transaction process is highly secure. Tokens issued through IEOs also enjoy higher acceptance.
Initial Game Asset Offering (IGO)
IGO is a crowdfunding method for blockchain game projects, distinct from other crowdfunding methods in that IGO issues virtual game assets (NFTs) such as weapons, lands, characters used in the game, in addition to tokens. Game projects can raise funds through exchanges by selling tokens, similar to IDO.
Initial NFT Offering (INO)
With the maturation of the NFT market, INO has emerged. INO is based on the ICO concept: offering limited edition digital artworks NFTs through various platforms. Issuers can add different values to attract investors to NFTs, such as staking mechanisms to reward investors and communities.
ILO: Initial Lock-up Offering
Users can pledge their digital currency to the platform through a lock-up operation, similar to fixed-term finance. After maturity, they can redeem their investment and receive new token rewards. Unlike IDO, ILO requires locking up digital currency, making it less flexible for withdrawals.
IFO: Initial Fork Offering
Forked tokens, derived from mainstream tokens, allow retail investors to mine in advance with mainstream tokens and receive derivative tokens, virtually at no cost. Even if the derivative token's value falls below its issuance price, there's no loss since it's zero cost.
Another interpretation of IFO is Initial Farm Offering, where you stake a specific TOKEN and then earn the right to purchase the newly issued TOKEN. This is commonly seen on SWAP websites.
Almcoin Trading Center advises that these basic concepts are the best way for cryptocurrency beginners to understand and participate in token issuance or sales, significantly aiding in improving their investment success rate. STO is the safest mode of participation, followed by the regulatory standards of IEO. Other methods carry higher risks!
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