Understand the concept of periods of investing in tokens sales
In the world in rapid evolution of cryptocurrency, chips sales have become a popular way for companies to collect capital and connect with investors. However, a key aspect that can be overlooked is the concept of periods of investment in chips sales. In this article, we will deepen during allocation periods, how they work and why they are crucial to understand successful chips sales.
What is an investment period?
An investment period is a time program in which an investor or holder of a cryptocurrency token must wait before being redeemed by its underlying assets. In other words, it is a delay that allows the issuer to hold their chips until they are ready to transfer them to investors.
How do investment periods work?
Let’s take a simple example to illustrate how tokens sales awards periods work. Suppose an investor buys 10,000 units of a new cryptocurrency token at a price of $ 100 per unit. The issuer decides to implement a 3 -year award period, during which the investor must retain the files before being redeemed.
This is what happens:
- First year: The investor has its tokens throughout the year.
- After the first year: the investor gains interests for his investment and can redeem up to 1/4 of his holdings in the third month.
- After 2 years: the investor has 3 more months before redeeming up to 1/8 of its farms.
- After 3 years: the investor chips are completely inverted and can exchange all their farms.
Why are investment periods crucial?
Investment periods add complexity to tokens sales, but also offer more benefits:
* Control on the calendar : Issuers have more control when investors can participate in the sale controlling the investment period.
* Flexibility : Issuers can offer different investment periods for different levels of investors, allowing them to adapt their offers to certain markets and investor groups.
* Increase in income : Consultation periods can provide additional income flows for issuers, because they obtain interest on unpleasant chips.
Types of investment periods
There are several types of investment periods that emitters can use:
* Fixed investment period
: The same duration for all investors (for example, 3 years).
* Variable investment period : News time varies according to investor performance or other factors.
* News -based news : Tokens at the base of specific criteria, such as compliance with certain reference points.
Best practices for emitters
Isorists must follow these best practices by implementing periods of investing in their tokens sales:
- Clearly communicate the investment period and any associated requirement (for example, it has a minimum tokens).
- Provide detailed information on the investment period, including starting and completion data.
- Allow investors to renounce the allocation period if they cannot hold on to their chips.
Conclusion
In conclusion, investment periods add an additional layer of complexity to tokens sales, but offers more benefits. Understanding how investment periods work and why they are crucial in tokens sales, issuers can better administer investor expectations and create successful results for all parties involved. As the cryptocurrency market continues to evolve, it is essential that the emitters remain informed about the latest developments and best practices by implementing investment periods.
Recommended Reading:
- “Periods of investing in tokens” by Coistingraph
- “Understand the periods of investing in blockchain projects” by cryptomoneda.com
- “The benefits of implementing an allocation period in chips sales” of Cryptoslate
Discharge of responsibility: This article is only for informative purposes and should not be considered as investment councils.