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.
Glossar
User Base
Participation ⎊ The user base, within cryptocurrency derivatives, options trading, and financial derivatives, represents the aggregate of individuals and entities actively engaging with platforms and protocols facilitating these instruments.
User Base Apathy
Condition ⎊ User base apathy describes a state where a significant portion of a cryptocurrency protocol's token holders or registered users exhibit minimal or declining engagement with the platform's core functions, such as trading, staking, or governance participation.
Existing User Base
Adoption ⎊ Existing User Base within cryptocurrency, options trading, and financial derivatives represents a critical mass necessary for network effects and liquidity provision, influencing market depth and price discovery mechanisms.