Understanding of tokens sales structures for Bitcoin Cash (BCH)
Bitcoin Cash (BCH), a Peer-to-Peer cryptocurrency, has gained popularity in recent years thanks to its fast and simple transaction process. Being the third largest cryptocurrency by market capitalization, BCH is an interesting option for investors who wish to diversify their portfolios. However, with great power arrives a great complexity and one of the main challenges of investments in BCH is to understand the various tokens sales structures that are used to collect funds for projects.
In this article, we will explore the different types of tokens sales structures commonly used in cryptocurrency projects, focusing specifically on Bitcoin Cash (BCH).
What is a symbolic sale?
A sale of tokens is a fund collection process in the online rod style in which a project or a company issues a number of tokens for investors in exchange for a specific quantity of cryptocurrency. The objective of a token sale is to collect funds from a large number of participants and the result determines which projects are funded.
Structures for the sale of tokens:
There are different types of token sales structures commonly used in the cryptocurrency sector. Here are some of the most common:
- Initial offer of parts (ICO) : an ICO is similar to an initial public offer (IPO), but it is an event to a single project issues its token to investors. The tokens are generally sold at a fixed price and the product goes directly to the project.
- Sale of tokens : A sale of tokens is a series of stems where more projects emit their token to investors over time. Each bid generally has a pre-established number of tokens available for sale.
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- Sale of public tokens (P2P) : a sale of public tokens is the type of sale of the most common tokens, in which the more the projects emit their token in investors over time.
Sale of specific tokens for BCH:
Bitcoin Cash (BCH) used several tokens sales structures in its history, in particular:
- Icos : BCH published its first ICO in 2017, collecting $ 25 million with a large number of participants.
2 The sale of tokens was made for several weeks, with the product that goes directly to the project.
- Sale of private tokens : In December 2019, BCH announced that it would have a sale of private tokens, which only invited accredited investors.
Advantages of each token sales structure:
Each token sales structure has its own set of advantages and disadvantages:
* ICOS : ICO is often cheaper to set up compared to sales of public tokens, because they do not require an initial offer of parts (ICO) by the founders of the project. However, they also have a lower success rate, as many projects fail due to poor execution.
* Sale of tokens : The sales of tokens offer greater flexibility and control for the founders of the project, because they can issue tokens at any time without going through an ICO process. However, sales of public tokens are often more transparent and fair, with a fixed price for each token.
* Sale of private tokens : private tokens sales provide investors with greater exclusivity and transparency than sales of public tokens, but are also with higher risks, because the project is not required to disseminate their finances or their operations.
Conclusion:
Understanding different tokens sales structures can be complex, but recognizing the different types of fund collection processes used in the cryptocurrency sector, investors can make more informed decisions on projects deserve to invest. Bitcoin Cash (BCH) has successfully used several tokens sales structures in its history, including ICO sales and tokens.
