Terminology
Terminology for Token Offerings
ITO (Initial Token Offering):
An Initial Token Offering (ITO) is a fundraising method where a company or project sells tokens to investors. These tokens can represent various assets or utilities within the project's ecosystem. The ITO aims to raise capital for the development and expansion of the project.
ICO (Initial Coin Offering):
An Initial Coin Offering (ICO) is a type of crowdfunding using cryptocurrencies. Companies offer digital tokens in exchange for investment, similar to an ITO. ICOs are often used to raise funds for new cryptocurrency projects and are an early form of capital raising within the crypto space.
Seed Sale:
The Seed Sale is the earliest stage of token sales, typically involving a limited number of strategic investors or venture capitalists. Tokens are sold at a significant discount compared to later stages. The funds raised during this stage are primarily used to develop the project’s foundational elements and initial infrastructure.
PreSale:
The PreSale occurs before the public sale and is often divided into private and public presale phases. During this stage, tokens are sold to early supporters and investors at a discount. The PreSale aims to generate initial interest and raise funds to prepare for the public sale.
Public Sale:
The Public Sale is the final stage of the token offering, where tokens are sold to the general public. This stage usually features a fixed price for the tokens and is open to a broader audience. The funds raised during the Public Sale are typically used to finalize the project development, marketing, and expansion efforts.
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