Token Sale

The allocation of cryptos in exchange for investment funds or shares in the development company.

A token sale is the allocation of tokens to potential participants in a crypto project or cryptocurrency in exchange for their funds. It is very much like an Initial Coin Offering (ICO) where the development team of a crypto project offers up investment or shareholder spots in the form of obtainable cryptocurrencies. During the sale, users have the opportunity to obtain specified amounts of the token and might even gain investor statuses.

There are different types of token sales, with ICOs being the most popular. There are also private sales and auctions in which case available tokens are first sold to wealthy investors before the general public.

A majority of token sales take place on decentralized launchpads and centralized exchanges. The former has the benefit of anonymity and less competition for participating slots while the latter is more reliable and trustworthy.