Hi,
I've been reading about the strategy ICOs use for unsold tokens in case they do not reach their hard cap.
As far as I understand, there are a few options to be used for this scenario.
1) Unsold tokens are burned - the most common option used by ICOs. If tokens are burnt, token holders share will increase, therefore its price.
2) Unsold tokens are not burned - founders keep them. It's not a good option at the eyes of the token holders. It can be used as a personal interest.
3) Unsold tokens are airdropped - A few ICOs (eg. FundFantasy) used this strategy. As far as they see it, the token price will be decreased but will be readjusted because people will use it.
I'm not aware of any more alternatives to those three. What are your thoughts? Would you use option 1 or go for the other two options? Would you come up with another possibility?
Thank you very much.
There are selfishness in 3 choices there. If we choose the # 1 option, the business will definitely have to spend more to buy back its token number. => businesses lose a lot of money.
If we choose option 2, investors will suffer losses because too many tokens are used. => investors have mixed opinions and do not want to cooperate.
If we choose option 3, it will take a lot of time and will delay the progress of the project and this choice is still not beneficial for investors.
Whether a good project depends on founder. if they are a genuine founder, They will know what they do to be good for investors and businesses.