Hi all, I have been following cryptocurrency only since last November. I think I understand the basic on how trading works.
I am interested to know about the high level process (especially in terms of supply and pricing) in creating a new token.
When someone created a new token (eg. Ethereum token) we specify the total supply of the tokens and the initial price. Then people who bought them (usually through an ICO) will send ETH to smart contract address and get some tokens. My questions:
- Who will own those fund (ETH) sent to smart contract address? The cryptocurrency creator?
- Am I right that the price won't change until all tokens bought because "there is no shortage of supply" until all tokens bought
- Can we release only a certain number of tokens every year, for example if the total supply is 5 million tokens and we release only 1 million token a year then the supply will last for at least 5 years. How's that affect the price?
Very newbie questions? Sorry ... just want to get my head around it. Thank you.