What Is the Significance of an Existing User Base in a Reverse ICO’s Success?

An existing user base provides immediate adoption and liquidity for the newly issued token. These users are already familiar with the company's product or service, reducing the friction of onboarding them onto the new blockchain platform.

This inherent demand helps stabilize the token price and provides a strong foundation for network effects. It significantly lowers the marketing and customer acquisition costs compared to a startup ICO.