ICOs - Token pricing methods, what you think?

[obadia]

During an ICO the various participants will deposit their donations/purchases in an account. Against that they will receive the coins offered but how and when are the valuations counted is the purpose of the thread:

A. Parity of coins vs USD
A price for the coins and valuation tiers is created.
The calendar or the tiers defines a price of X coins per USD (or X USD per coin).
At the end of the ICO, the total quantity of USD is counted (with the Tiers involved) and the coins bought are created.


B. Parity of coins vs USD with burning
A fixed quantity of coins and valuation tiers is created.
The calendar or the tiers defines a price of X coins per USD (or X USD per coin).
At the end of the ICO, the total quantity of USD is counted (with the Tiers involved) and the coins that are not sold are burnt.

C. Multicurrency -floating.
A fixed quantity of coins and valuation tiers is created.
A parity is given in USD (X coins per USD) but other currencies (BT, ETH, whatever) are accepted at a floating price vs their respective value in USD at their valuation at the end of the ICO.
In other words the quantity of tokens received for somebody who paid in ETH or BTC will only be final at the end of the ICO, depending on the rate vs USD
At the end of the ICO, the total quantity of USD is counted (with the Tiers involved) and the coins that are not sold are burnt or created depending if we follow a model like A or B.

D.  Multicurrency - Set
Same as C but the price is set at the moment in which each investment or donation is done, in other words you take the instant rate when the transaction is received.


E. Dutch Auction
A fixed quantity of coins is created and tier multiples are set.
Investors purchase/donate/invest and the time and tier is recorded.
At the end of the ICO, the whole amount of coins is shared pro-rata (including Tiers).
Each investor will receive the coins pro-rate and the price will be then defined simply by taking all the investments and dividing it by all the coins created.
 

Please share your opinions on what is best in your eyes, what you prefer and, in particular, why!


I am trying to think about the most efficient and clear way to bring value to the process, since many ICOs have different use-cases...

[1715098461]

1715098461

[1715098461]

1715098461

[1715098461]

1715098461

[1715098461]

1715098461

[Kuchiyosenojutsu]

every ico project is always different, they have the vision and mission to introduce products with different blockchain system. and of course their judgments are also different. we as citizens who love blockchain, of course must always support their programs. because it will change our future even better in terms of transacting. which is where the real money is not transparent and the transaction system is not good. therefore with a blockchain system that becomes a solution to overcome them

[obadia]

Indeed they are all different, but the idea is too see who prefers what and particularly why!

I honestly fail to see how the mission of any ICO will influence the choice, of burning the tokens or creating them on the go?

It seems more like a technicality which, if all ICO don't follow the same technical path on this point, has to matter somehow. That's kind of what I am looking for. Understanding the differences. The ultimate goal is the same, isn't it?



Cheers.

[obadia]

Nobody has any comment? I would be happy to know what people think!

[Gab20]

Perhaps people are not commenting due to the technicality involved or because it is not a topic of their interest.

[Gab20]

Nonetheless, i will like to ask you a question.
Are you running a project on ICO or you intend running it?

[Angelia46]

Dutch auction is one of my hate ways to get involved, because most of the hard hats are so big that it's hard to profit from them.
The project I like is the ICO of the token with USD, because it can guarantee that the cost of most of the people involved in the ICO is close.

[obadia]

Thanks for the answers.

I understand the technicality is a problem for some users, but if i don't ask here where can i ask?

@Angelia46 Thanks, ultimately the pro-rata of the project you own is the same, and the total investment is the same too. It is a question of predictability. Anyway, thanks)

@Gab20 Yes and no) I am not launching an ICO but advising (mostly hard financials) for different topics two different ICOs. This being said the topic has arisen in independently in both projects and made me think: what do people actually like? Since, following Ricardo's theory, all are finally the same for the coin creators, the choice has to liaise in the preference of the investors. Why?

[pearlsome]

Model E, if honestly infuriates the most. I send all my documents, I send 5 Ether, I wait a month. And ........ I get back 4 ethereum and 1 Eth in the form of tokens. I always get the impression that my money is being used, they get some kind of additional benefit. And then they give it back. It's like a loan, only interest-free.

Model D, more familiar. You paid and immediately received.

However, if I like the idea of the project. Whatever model the company chooses, I would still invest.

[obadia]

@pearlsome

Hi, thanks for answering.

Actually, I do not see your point. It might be because I didn't explain me well:

The goal of a Dutch action is not to "borrow" or even less to give back Eth, but simply to determine the valuation of the token depending on the total coin market cap at the moment of closing it. Said in other words and with an example

ICO Bananas decides to emit the bananico:

Intead if saying Bananico is worth 0.001 ETH and it will be 1Million bananicos, they say:

- We will take our total amount of Bananicos, ie 1Million. You invest normally and then at the end of the ICO we take the full supply of bananicos and divide it Pro-Rata, so if the total invested was 200eth, you will receive 1/200*1M bananicos per ETH invested. If it was a killing and they raised 2000 eth, you will receive 1/2000*1M bananicos per ETH invested. The "equity" value will be the same!

[aussiesloth]

For me, setting the price to USD (or some other fiat currency like EUR, GBP, SGD, JPY, etc) makes it easier for me to figure out a 'value'.  It also seems to be easier to have multiple currency payment methods, as people can pay in fiat, if they don't yet have crypto, and it you have one of the major cryptos, you don't necessarily have to exchange it into another crypto to make payment.