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How does the distribution of tokens in an initial coin offering (ICO) work?

avatarMahmoud SabryNov 25, 2021 · 3 years ago1 answers

Can you explain the process of token distribution in an initial coin offering (ICO)? How are tokens allocated to investors and participants?

How does the distribution of tokens in an initial coin offering (ICO) work?
Initial Coin Offering
ICO
Token Distribution

1 answers

  • avatarNov 25, 2021 · 3 years ago
    During an initial coin offering (ICO), the distribution of tokens is a key step. Tokens are typically distributed to investors and participants based on their contribution to the ICO. This can be done through a smart contract that automatically sends tokens to the contributors' wallets. The allocation of tokens can be based on a fixed ratio or a dynamic pricing model, depending on the ICO's structure. It's important for investors to carefully assess the ICO project and its token distribution mechanism before making any investment decisions. Conducting thorough research and seeking professional advice can help mitigate risks and maximize potential returns.

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