The Benefit Of Initial Coin Offering : Ownership And Influence

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Hello great minds,

It is another beautiful day and I trust you are doing perfectly fine and are enjoying your activities in the community.

I feel honored to come before you all again to continue our discussion on the benefit of Initial coin offering.

In our last discussion, we learnt about how transparent fund allocation is a benefit of Initial coin offering, and today, we shall be learning about another benefit of Initial coin offering.

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BENEFIT OF INITIAL COIN OFFERING

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Initial coin offering as we know is a very popular way in which blockchain based project generate funds for their businesses.

In this discussion, we will be learning about a benefit of Initial coin offering.

• OWNERSHIP AND INFLUENCE:

Another critical benefit of Initial coin offering is what we know to be ownership and influence as they play very important role in the sustainance and success of these project.

In this context, ownership refers to the possession of tokens that is being issued by the project.

As participation process in ico, participants have to invest in the project by purchasing its native tokens.

In the project, the purchased token serve as a form of ownership and gives the investors the access to the services and functionalities offered by the project.

The decentralized nature of the blockchain ensures that ownership right are given directly to token holders without the need to depend on intermediaries like banks.

Explained below are some ways in which ownership and influence is an advantage of Initial coin offering.

POTENTIAL FOR FINANCIAL GAIN

One unique benefit of ownership through ico is that it create the potential for financial gain.

As the project grows and gains popularity, so does the value of it's token, and this gives token holders the opportunity to make huge profit from the appreciation of the token value

Investors in this case are already owners of the token and they can do to it as they please, in that scenario, they have the opportunity to make profit from this price increment.

GOVERNANCE RIGHT

Governance rights is another benefit of ownership in Initial coin offering.

Here, token holders are given the opportunity to participate in the decision making process of the project.

Decision making processes such as contribution to the developmental road map of the project, voting on proposed changes to the protocol of the project, and some other important and pressing issues.

The community is being empowered by this democracy and it alligns the token holder's interest with overall success of the project.

CONTRIBUTE TO A SENSE OF LOYALTY

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Speaking about influence in the context of Initial coin offering.

Influence makes a contribution to a sense of shared responsibility and of community engagement.

A more committed and loyal user base is being created by projects that actively involves their token holders in their decision making processes.

This engaged community plays a huge role in contributing to the growth of a project, also provide valuable feedback and function as advocate, thus driving a wider adoption.

PROVIDES A LIKELIHOOD OF CREATING A GOOD PLATFORM

When the development and growth of a project underlying technology is being considered, the influence of participants becomes very important.

Decentralized project are most times dependent on community of developers, and the project technical road map can be guided by the input from token holders.

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CONCLUSION

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We have learnt about another importance of Initial coin offering which is ownership and influence.

We have seen how ownership can benefit investors and how influence can contribute to the growth of the project