Hello there, please i help. Please Pardon my in experience.
Am planning on a project but will like to run an ICO maybe after like 3 - 4 Months after launch, but i really want to be sure of what am about to do.
My project simply receives payment via Bitcoin, and may be we will add ETH later.
But i know its possible to offer to sell your own token but it need to be useable on the site itself so i read.
Now am proposing to Develop a token on Etherum, and connect this token to the site for funding an account. I also read that it's possible for this token to be traded. So owners of the token can either trade it on exchange or use it on the site
I hope am correct to this extent.
My main worry now is.
If for example 200,000 worth of token is sold for $0.01 each, it means you would need 100value of the token to buy something worth $1 at the present token value.
How will the value increase? Does it mean that we will be giving back what was sold in the token? If not, how will the value increase via exchange?
Am planning on a project but will like to run an ICO maybe after like 3 - 4 Months after launch, but i really want to be sure of what am about to do.
My project simply receives payment via Bitcoin, and may be we will add ETH later.
But i know its possible to offer to sell your own token but it need to be useable on the site itself so i read.
Now am proposing to Develop a token on Etherum, and connect this token to the site for funding an account. I also read that it's possible for this token to be traded. So owners of the token can either trade it on exchange or use it on the site
I hope am correct to this extent.
My main worry now is.
If for example 200,000 worth of token is sold for $0.01 each, it means you would need 100value of the token to buy something worth $1 at the present token value.
How will the value increase? Does it mean that we will be giving back what was sold in the token? If not, how will the value increase via exchange?
Values of your token will be set by supply-and-demand limits.
If there is a greater demand on the coin then the supply, the coin will go up in value. If there is agerater suppy, the inverse will happen and the coin will start to decrease in value.
Therefore, your coin/tokens value will be set by the people using the exchange itself and placing Buy/Sell orders on it.
Thanks so much for responding
But what will determine the first exchange rate initially before the forces of demand and supply takes place?
The price you choose to set it at.
Unless you want to try to giveaway some of the tokens first.
Such as offering a token for 1 satoshi each and 1000 tokens free when a user signs up or omethinglike that.
You have to work out how much you think your token is worth first and how much demand there will be on the token and your site in general.
Thanks so much.
But i was actually referring to how much initially the token will worth at the exchange sites where these tokens can be exchanged to other crypto coins
If i sell the 1 token value at $0.01 for example, will this be the same value at the exchange platform before the force of demand and supply takes place?
Thanks.
It'll be what users wish to sell it at.
If you limit the number that can be bought at $0.01 then when that runs out the value of the tokens may spike a little.
But it depends on what the token is and how it works. Also, you might not be able to use other exchanges unless it is decentralised in the way altcoins are as you are the one controlling all of these tokens and can technically recall them at any point and make them worthless.