What is the Credo token sale?
Many projects require capital to execute and grow in addition to what they generate from revenue. Project leaders historically had a limited range of options for acquiring this capital, including taking on debt, selling equity, and pre-selling their products. Over the last few years, token sales have emerged as a novel way to raise capital with a number of unique advantages.
These advantages include:
- Users become stakeholders: users are able to gain a stake in a project or protocol’s success. This gives them actual rewards for early adoption beyond unfortunately worthless bragging rights.
- Incentive alignment: rather than being in conflict, a project and its users have aligned incentives with a token sale since what is good for the token is also good for the users’ interests.
- Transparency: contributions in a token sale are generally made in a cryptocurrency on a blockchain, so all transactions are publicly visible for everyone to inspect.
These advantages made token sales an increasingly popular option, and one that BitBounce previously used with a sale in 2017 that raised over 31 thousand ETH.
The structure and form of token sales is still maturing. For instance, a number of sales were conducted in an all-at-once manner with the vast majority of tokens sold for a large amount upfront. This required contributors to take on excessive risk near the project’s outset. Token sales can address this through appropriating the practice of incremental fundraising so that participants can buy tokens in multiple rounds as the project is de-risked over time.
That’s why we’re holding our second token sale for Credo: we are raising capital for growth in the second of an incremental series of token sales that give our community a number of opportunities to acquire a stake in a gradually de-risked and increasingly valuable project.
If you are interested in supporting our project in the upcoming token sale, please complete this form to indicate that’s the case.