Everything that looks, sounds and behaves as if financial products may not what you dreamt of, having a huge bank balance and invested in the crypto mania, wait for the bubble to burst. The new form of fundraising in the mystic crypto world through Initial Coin Offerings is the token sale. It is close enough of IPO that traditional companies launch in a bid to raise working capital requirements for the public. Well, there must be a lot of research and analysis that has gone into aping the IPO and releasing the ICO tokens in exchange for US and Australian dollars.
The digital tokens fall within the category of crypto coins, in the base currency, Bitcoins or other asset-backed tokens like the DAO tokens that are largely regulated and has the real underlying asset value to be included while selling including the profit.
Unlocking the Token concept
while the source of cryptocurrency is still a muse, the token s issued are primarily to ensure that there is a legitimate deal within the crypto world, that is often plagued to be sham, that will vanish away
- the necessity to bring in the tokens were just like to find an alternate source of funding to meet the capital requirements of small and medium enterprises, the startup’s who are cash-strapped till they make a mark in their respective industry
- this decentralized form of crowdfunding and making mew enterprises see the daylight is very popular among the netizens who may or may not have prior experience in dealing with the alternative source of funding
- though it is almost very close to the mainstream currency system, it has stood the test of time with a very high tsunami wave-like peaks and then crashed down like pieces of glass, coin currency has managed to stay afloat
- with the use of blockchain technology the crypto world has utilized this single-use digital key into a whole new way of purchasing, retaining and transferring the ledger of transactions of the individual in the cloud space, that is highly encrypted and secure
The private keys are strings of numbers that are similar to the passwords that give access to your distributed ledger and the tokens that are fiat money equivalent. They are something more than fiat currency, as they give the leverage to the users to have them in cryptocurrency as well as convert into fiat currency including the appreciation that is the profit earned over the coins.