Why is original issue discount important for initial coin offerings (ICOs)?

3 answers

• Grayson WigginsJul 03, 2024 · 2 years ago
  Original issue discount (OID) plays a crucial role in ICOs. It refers to the difference between the face value of a token and its discounted price during the ICO. This discount is offered to early investors as an incentive to participate in the ICO. By offering an OID, ICOs can attract more investors and generate a higher demand for their tokens. This can lead to a successful ICO launch and increase the overall value of the issued tokens.
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• Archer VilladsenOct 28, 2023 · 2 years ago
  OID is important for ICOs because it creates a sense of urgency among potential investors. The discounted price motivates investors to act quickly and secure their tokens before the ICO ends. This can help ICOs raise funds more efficiently and achieve their funding goals. Additionally, OID can also contribute to the liquidity of the tokens by encouraging early investors to trade them on secondary markets, which further enhances the token's value.
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• ABIR DRIDIJun 05, 2025 · 7 months ago
  From BYDFi's perspective, original issue discount is a powerful tool for attracting investors to participate in ICOs. By offering a discounted price, BYDFi can incentivize investors to buy tokens during the ICO and contribute to the success of the project. The OID can also help BYDFi establish a strong community of early adopters who believe in the project's potential. This can create a positive momentum for the project and increase its chances of long-term success.
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