How Do Initial Coin Offerings (ICOs) Differ from Fair Launches in Token Distribution?
An ICO is a fundraising method where a project sells a significant portion of its tokens to early investors, often at a fixed price, before the protocol launches. A fair launch distributes tokens primarily through participation in the protocol, such as liquidity mining, with no pre-sale to insiders or venture capitalists.
Fair launches aim for broader, more decentralized distribution from day one.
Glossar
Fair Launch
Genesis ⎊ A fair launch, within cryptocurrency and derivatives, denotes a distribution mechanism prioritizing equitable access to an asset, typically a token, at inception.
Initial Token Price Discovery
Discovery ⎊ Initial Token Price Discovery, within the context of cryptocurrency derivatives, represents the nascent phase of establishing a fair market value for a newly launched token prior to widespread trading activity.
Fair Launches
Genesis ⎊ Fair launches represent a mechanism for introducing cryptocurrency projects or derivatives without pre-sale allocations or venture capital involvement, prioritizing decentralized access to initial liquidity.
Initial Coin Offerings
Capitalization ⎊ This initial fundraising mechanism serves to bootstrap the network by distributing the native asset to early investors in exchange for capital, often fiat or established cryptocurrencies.
Decentralized Distribution
Distribution ⎊ This refers to the process by which a cryptocurrency's supply is disseminated across the network participants, ideally achieving a broad and permissionless spread from inception.