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Author Topic: ICO with fixed tokens  (Read 216 times)
biczbozy (OP)
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November 14, 2018, 03:02:12 PM
 #1

Hi can you give me few examples of ICO that  increase  number of tokens  and succced anyway? Im a little bit afraid of that kind of project , and if  anyone can  explain how fixed tokens in ico works?It changes vallue of all ? part of them  is lost? How does it work

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November 14, 2018, 03:47:32 PM
 #2

Hi can you give me few examples of ICO that  increase  number of tokens  and succced anyway?

I do not quite understand what you mean by 'increase number of tokens'.
Most ICOs use a finite supply, and the fundraising is closed once the hardcap is reached irrespective of the roadmap timeline.

An infinite supply is not common (I have not participated in any of such) and investors would be very skeptical as there is no regulations to the supply of tokens they are purchasing.

and if  anyone can  explain how fixed tokens in ico works?It changes vallue of all ? part of them  is lost? How does it work

I do not understand this part at all, do you mind rewording the sentence?

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November 14, 2018, 03:57:37 PM
 #3

Hi can you give me few examples of ICO that  increase  number of tokens  and succced anyway? Im a little bit afraid of that kind of project , and if  anyone can  explain how fixed tokens in ico works?It changes vallue of all ? part of them  is lost? How does it work



Where you heard this? I believed you encounter a project with that kind of scheme. No way you will just think of it out of nowhere that's why you asked.

Mentioned the name of the project and I will look into it for you.

Honestly never did heard a project like that. I mean, why?

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DdmrDdmr
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November 14, 2018, 04:38:01 PM
Merited by joniboini (1)
 #4

<…>
Not sure I get your questions, but here is what I can give you based on what I’ve understood from your OP:

- ICO success is not dependent on the number of tokens, Soft Cap or Hard Caps they set. In fact, there are Armageddon studies that rate ICO success on the whole very low (see New Study: 80% of ICOs are Scams, Only 8% Reach an Exchange for example), with the following resulting distribution:

  80% of the ICOs were scams from the start.
  6% failed. 
  5% died in the process.
  8% manages to reach the exchanges, but only half of them were successful.

- ICOs normally specify a fixed set of tokens on their whitepaper, with a certain distribution (reserved for personnel, pre-sale, crowd sale, promotion, etc.). The associated price may be tied to a FIAT value (i.e. 1 token = 0.2 USD) or cryptocurrency value (typically ETH, but there are others), and be defined beforehand or during ICO sale (i.e. Dutch Auction).

Some ICOs nevertheless alter the number of allocated tokens before the sale, especially if they have token value tied to FIAT and they want to change their caps. I can’t recall now cases that have risen the number of tokens to produce, but an example of the opposite can be found here: nOS Significantly lowers Hard Cap & Token Supply.

If the case you are on about is increasing the ICO’s token pool, it is likely that they are rising their Caps (this could be good, since they have a better perspective, or bad if they rise it too much or is a scam to start with).

- Token value, as I said before, could vary before and during the ICO (even more so after), depending on how they fix the price as said above. For example, I’ve seen cases where the price is set against ETH, and ETH varies wildly throughout the ICO itself.

- Once the ICO is finished, if it manages to hit the markets at all, price will vary through supply and demand (and often due to pumps&dumps).

- When an ICO reaches Soft Cap, but not Hard Cap, it may decide (normally it should be in the whitepaper) to burn the non-sold tokens, which is generally beneficial for the token (of course, if it’s a crap token from a fraudulent ICO, it won’t really matter). Alternatively, they sometimes distribute the exceeding token amongst the ICO participants, proportionally to their contribution.
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November 15, 2018, 03:46:51 AM
 #5

There must be something wrong with the token metrics if they decided to change it in the middle of the ICO, not necessarily a bad thing. For example, LTO Network increases their supply 10x from initial supply, but they also reduce the price per token to $0.03 (from $0.3), CMIIW. In another case, I also saw a project decided to increase their supply because nearly 50% of their tokens are in the hand of bounty hunters, which is why they fucked up so bad after they hit the market.

I'd rather ask why they decided to increase their supply and do my own diligence on the team. If the team is bad, there is a high possibility the ICO will fail, or even if it reach the soft-cap, it will be a dead token.

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November 15, 2018, 05:05:42 AM
 #6

Could you eventually name one or two projects you are referring to?
Vaultitude eg. did exactly the opposite, they reduced the token supply to 1/10 during the payout phase.


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November 15, 2018, 05:09:18 AM
 #7

Hi can you give me few examples of ICO that  increase  number of tokens  and succced anyway?

Currently, almost ICOs are fixed their total supply. I joined in crypto world in 6 months ago and I have never seen any ICOs unfixing total supply. You will see some project run Seed Token Offering, in which they will generate amount of tokens according to number of sold tokens. And at the end of event, they still fix amount of tokens.

The only project raising number of tokens increasingly is USDT  Grin And that is why the value of USDT suddenly dropped in the last few weeks.


and if  anyone can  explain how fixed tokens in ico works?

This is the problem of the developers. If you know it, you still change nothing because it depends on the issuers.

It changes vallue of all ?

Of course. Because if there is no fixed amount, inflation will occur and the value of the token will decrease.

The last two questions, I do not understand what you mean.
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November 15, 2018, 12:24:52 PM
 #8

Well to my own understanding a token can be fixed to a particular amount at that moment the amount can either be in dollars or in bitcoin or ethereum. And it is pegged at that amount

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