How does an ICO project make money
The Initial Coin Offering (ICO) is an innovative method of fundraising. ICOs issue tokens that are comparable to stock, and they can be compared to IPOs. (Initial Public Offering). The tokens issued hold intrinsic value. These are comparable to loyalty tokens that are issued by chain outlets.
There’s a catch. Tokens appreciate in value as the activity volume increases, and these tokens are not restricted to being traded in exchange for services within the platform, but can instead be traded anywhere.
ICO projects market themselves through ICO marketing campaigns, and these campaigns consist of strategies that are developed to attract, retain, and convert prospective investors interested in the project.
As existing investors have the incentive to bring in additional investors to the project, effective ICO marketing enhances the ICO token’s value.
These are some of the ways in which an ICO project makes money:
Crowdsales (Enabling early adopters)
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