A public or private sale of cryptocurrency tokens to raise funds for project development.
What is a Token Sale?
A token sale is a fundraising event where a blockchain project sells its native tokens to investors in exchange for cryptocurrency or fiat currency. Token sales can be public (open to everyone) or private (restricted to accredited investors).
Types of Token Sales
Private sale for institutional and accredited investors at discounted rates. Pre-sale for early community supporters. Public sale open to all participants. Launchpad sales through curated platforms. Dutch auctions with declining price mechanisms.
Why Token Sales Matter
Token sales are the primary fundraising mechanism for blockchain projects, providing capital for development while distributing tokens to build a community of stakeholders.
Summary
Token sales enable crypto projects to raise development funds while distributing tokens to investors and community members.
