What is a Token Offering

  • 25 min
  • Beginner
  • 14.10.2021
  • #Token
What is a Token Offering

Introduction

Over the years, there have been multiple iterations of companies or projects issuing their own token. In all cases, this occurs through a token offering, although the distribution model can differ a bit.

What Exactly is a Token Offering?

A token offering, often referred to as an initial token offering, is a very interesting concept. This has become a growing trend in the financial services industry, primarily thanks to the help of blockchain and cryptocurrency technology. An ITO is a virtual form of investment, primarily used by startups and smaller companies, to raise capital for future development or business affairs. 

 

What makes this concept appealing to companies is the use of blockchain technology. It introduces an extra layer of transparency, while also being able to code the terms of the ITO into an initial blockchain-based contract. Once investors allocate funds, they will receive tokens on a prorated basis automatically via the initially dictated settings. A very convenient business model, approachable by anyone with the basic knowledge of how to write such code. 

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