Crypto Terms: Letter T

What is Token Sale?

Token Sale MEANING:
Token Sale - is a type of sale that’s done in advance of the official cryptocurrency launch.
2 minutes

Let's find out Token Sale meaning, definition in crypto, what is Token Sale, and all other detailed facts.

A Token Sale is the first step of a token offering before the new cryptocurrency is officially launched and available to the general public.

This type of sale is vital in helping startups and new cryptocurrencies succeed. It’s considered to be one of the best ways to raise capital.

The most well-known type of token sale is called an initial token offering (ICO). It’s a method of raising funds that is especially appealing to new crypto projects. The way it works is pretty straightforward. Investors are given a chance to purchase the new cryptocurrency, usually at a discounted price before it’s publicly launched. Although they have been identified as high-risk investments, so tread lightly if you decide to partake in such a token sale. 

The success of Bitcoin and Ethereum is bringing more and more alternative cryptocurrencies. More often than not, these new projects don’t have a lot of funds in reserve. In order to continue developing their cryptocurrency, they require external investments. This is where token sales come in. 

Token sales act as an introduction to a new cryptocurrency to attract investors. Startups employ marketing campaigns to appeal to investors and inform them about their new cryptocurrency.

It’s been known that some new projects use token sales exclusively as a marketing effort where they invite only certain people that can benefit the project. 

As mentioned above, token sales are key in determining how successful a project is going to be. Therefore, each token sale is expanded on in detail in the whitepaper which is a document where investors can find all of the technical information regarding the crypto project. Investors can take a look at this whitepaper and easily find out the number of coins or tokens the project is willing to give away in the token sale.

Moreover, token sales are also an indicator of how successful a project is going to be. It’s the main reason why there was a huge increase in token sales when the cryptocurrency sector was still establishing itself. This resulted in a crisis in the market since there was an abundance of new cryptocurrencies.