Overview
A token sale is a sale of tokens to the public or investors to raise funds for a project. It is a common way to fund development and distribute initial supply. Sales vary in structure and regulation.
How It Works
A project offers tokens at a set price or via auction, often with a cap. Buyers fund the project and receive tokens. Sales may be public, private, or via a launchpad.
Why It Matters
Token sales bootstrap projects and communities but carry regulatory and scam risk. They are the origin of token distribution. Their structure affects fairness and price stability.
Related Concepts
Token sales relate to Tokenomics, Airdrops, and Vesting. They are a launch mechanism for new projects.