Understanding of tokens sales structures for Bitcoin in cash (BCH)
In the world of cryptocurrencies, tokens sales structures play a crucial role in determining the success and legitimacy of projects. Bitcoin Cash (BCH), one of the largest Altcoin exchanges after Ethereum, has been using several tokens sales structures to raise investors’ funds. In this article, we will deepen the different types of tokens sale structures commonly used for BCH and we will provide an overview of each one.
1. Initial Coin Offer (ICO)
An initial currency offer is a type of tokens sale in which a project issues its own cryptocurrency as a reward for investors that contribute to capital or participate in the sale. In the case of BCH, ICOs have been widely used to raise funds for several projects, including new characteristics, associations and marketing campaigns.
The advantages of an ICO include:
- Fast transaction processing times
- Lower transaction rates compared to traditional payment systems
- Ability to broadcast a wide range of tokens with unique properties
However, ICO also come with significant risks, such as:
- Lack of regulatory supervision
- Unpredictable market conditions
- Potential for schemes or scams of Ponzi
2. Token sale in exchanges
Tokens sales made in cryptocurrency exchanges are another common method used to raise funds. These exchanges allow users to buy and sell several cryptocurrencies, including BCH.
The advantages of the sale of tokens in exchanges include:
- Wide scope and accessibility
- Existing infrastructure and logistics
- Potential for greater visibility and legitimacy
However, tokens sales in exchanges also have their own risk set, such as:
- Higher rates compared to private or icos sales
- Increased scrutiny of regulatory bodies
- Potential for market manipulation or the exchange of privileged information
3. Private sale
A private sale is an individual transaction between an individual investor and project developers, where the terms and conditions of the sale agree without advertising it.
The advantages of private sales include:
- Reduced regulatory risk
- Ability to emit tokens with personalized characteristics
- Increased control over marketing and promotion
However, private sales are often considered illicit due to their lack of transparency and potential for improper use. The law enforcement agencies have taken energetic measures against these schemes in the past, which makes them more and more rare.
4. Security Token Offer (STO)
An offer of safety tokens is a type of tokens sale that issues values or tokens with underlying assets, such as cryptocurrencies, real estate or actions. Companies often use STO to raise funds for specific projects or acquisitions.
The advantages of the STO include:
- Ability to issue convertible bonds or guarantees
- Increased legitimacy and credibility
- Potential for higher yields compared to traditional investment options
However, STO also come with significant risks, such as:
- Regulatory challenges of uncertainty and compliance
- Increase in the scrutiny of the financial authorities
- Potential for market manipulation or the exchange of privileged information
5. crowdfunding
Crowdfunding is a platform that allows people to contribute funds to a project or commercial company in exchange for capital or rewards.
Crowdfunding advantages include:
- Wide scope and accessibility
- Ability to raise large amounts of capital
- Potential for an increase in community participation and support
However, crowdfunding also has its own set of risks, such as:
- Regulatory challenges of uncertainty and compliance
- Increased investor and public scrutiny
- Potential of scams or false promises
Conclusion
Tokens sales structures play a fundamental role in determining the success and legitimacy of the projects.
