Do ICOs have to predefine coin supply

Oceat

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Quote from: Deadpool619 on March 22, 2018, 05:38:21 AM

Has this instance occurred previously?
So will they have to release another ICO

It may happen but it changes the price of their tokens after it is being released at the exchanges and no one would like to happen that. So, basically it is the developers fault if he didn't burn the remaining token after the ICO sale.

If they have to release another ICO it should be a different token name so it will not alter the existing tokens.

1C6fV5DtakfKANLJ8GUV7hCaA

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Crypto Marketer For Whales

ICOs have their terms stated on their whitepaper. The supply varies from one ICO to another. There are fixed supplies, minted (generated occasionally) and burned supply allocation. It really depends per project.

salterious

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They are allowed to burn extra coins if there are any, they can't create new coins just out of the blue. Not unless it specifically states that in their TOS, but if it specifically states that then I would not touch that ICO with a 10 foot pole.

TheGreatUnknown

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I don't think it's better for them to increase their coin supply in the later part because it will only decrease their value and this is one of the reasons why most ICO's at the end of their sale burn all the unsold tokens for them to keep the volume of the sold tokens and preserved it. It;s just basic economics the higher demand and less supply, Higher price but high demand more supply, a not so high price value.

chidrawarster

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Yes if they predefine,its well and good.But if they dont define then there is always an issue while presale and post sale based on the volume and transactions they generate.Its always good to keep some coins in reserve which can be burnt later based on the usage and ico closure and performance.Now its time to get the details rolling for the customers and also the investors to be intact with the rite details.

Heisenberg_Hunter

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Yes it is possible to increase the supply of total coins at a later stage. But the Token owners doesn't involve in them, as because such an activity could result in affecting the token price hugely in the exchanges. Investors never accept them and some sort of arguments could occur between the investors and owners. A token supply amount which was mentioned in the white paper will be carried through out the project.

Similarly burning of unsold coins/tokens could occur because that would increase the price of a token and would help the investors. Hence decreasing the total supply would occur at some point if there is very low sales in the pre ICO and the ICO phase. This instance would occur on very rare instances and such a instance could bring a downfall for the token whereas decrease in total supply would be appreciated.

Xester

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The number of coins are being specified on the whitepaper. The total number of coins is referring to the maximum limit a coin can be produced and the number of coin being circulated is the number of coin being produced at the moment. Lastly we have the Initial coin supply and that is the number of coins being produced at the beginning.

But all of those numbers can be changed by the developer anytime he wants because they have the program and the software and they have the control over it. Everything will depend on their sales so if the sales are short or good it is either to increase the number of coins or to burn some of the remaining coin.

Vit83

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As I know they technically they can. Coin supply increase, as a rule, causes negative storm from token holders) This decrease price of existing tokens. Nobody likes this.

Deadpool619

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Has this instance occurred previously?
So will they have to release another ICO

Kokondao

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I understand that ico coin has provided supply to some extent, and the possibility that there is still a lot of demand and supply runs out can be added again.

Ranly123

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Quote from: Deadpool619 on March 22, 2018, 05:10:48 AM

Is it possible for an ICO to increase the total coin supply later
lets say their coins are all sold out but there still seems to be some demand for it
Then what?

That could be possible since coins are only created. So in other words it could also be edited and the developer can create additional coins to serve the needs of it's customer. It is only a thought that came out of my mind and I don't intend disregard the security of some ico and their sincerity to the project they made.

Deadpool619

newbie

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Is it possible for an ICO to increase the total coin supply later
lets say their coins are all sold out but there still seems to be some demand for it
Then what?

Topic: Do ICOs have to predefine coin supply (Read 150 times)