There are a number of fundraising techniques adopted by emerging projects to enhance their business. Initial NFT offering is a recently initiated fundraising technique, basically designed for decentralized platforms. Here is a guide to dive further and understand it better.
The increasingly swift approach towards the digital world has equally increased the usage of cryptocurrency to a great extent. Hence, in order to help business entities and baby platforms raise funds and nurture their project to yield more recognition and attract early investors, a number of fundraising models and crowdfunding projects have been developed. These fundraising platforms help various business entities to increase the yielding of profit. Notably, the most popular fundraising model in the crypto space is the Initial Coin Offering (ICO). Users of this model reward their investors with a crypto token for funding the platform. Aside from ICO, other notable fundraising projects include Initial Exchange Offering (IEO), Initial Dex Offering (IDO), and the Initial NFT Offering (INO), our main subject of emphasis in this guide.
The high demand for decentralized platforms has caused the popularity of cryptocurrencies to greatly increase as digital assets have gained recognition in almost all parts of the world. This has given rise to non-fungible tokens. Hence calling for the need for INO, a new cryptocurrency crowdfunding innovation that is based on the concept of Initial Coin Offering.
What Is An Initial NFT Offering (INO)?
Initial Non-Fungible Token Offering is a new type of crowdfunding platform in which the non-fungible tokens are sold at the early stage of the project for a stipulated period.
A non-fungible token (NFT) is a collectible digital asset that holds value in the form of cryptocurrency as well as in forms of digital representation of arts such as music or culture.
It is a digital token that has a variance of cryptocurrency. Its difference is basically its uniqueness and the fact that it does not allow like-for-like exchanges. This simply means you cannot exchange NFTs like paper-based currency. Trading NFT for another NFT will result in a completely different digital asset in your possession, NFTs are often supported by a local cryptocurrency.
As said earlier, non-fungible tokens can be in the form of artwork collectibles, files, music files, audio, or trading cards.
How An INO Works
Having been informed of what INO means, it is essential to know how it works. The definition of NFT works along with some of the things which are essential to choosing the top NFT marketplace.
NFT is the digital representation of an asset on a blockchain for all transactions. Blockchain is basically known for its various applications in the decentralized finance domain.
One popular blockchain platform for holding NFTs is Ethereum (ETH) alongside the role of other blockchains which provide support on transactions on Ethereum.
Creating an NFT involves the representation of digital objects be they tangible or intangible items. These items could include collectibles, music, videos, art pieces, GIFs, designer sneakers, and sports highlights, virtual avatars, and video games. Some rare items such as tweets have as well found recognition in the world of NFTs.
For this reason, it is easier to consider non-fungible tokens as physical collector’s items in the digital space alone. Instead of obtaining an actual painting, the buyer can get a digital file with ownership rights. NFTs could have just one owner at a particular time.
Advantages of INO
As said earlier, NFTs are gaining massive adoption as lots of new enthusiasts dive into the NFT market. This explains the growth of NFTs, hence resulting in a rise in Initial NFT Offerings that provide the NFT marketplace with lots of advantages. Below are some of them:
Easy launch of NFT projects with no special expertise. Initial NFT Offerings allow people to easily issue limited edition NFTs. With the features that come with Initial NFT Offerings, anyone with little expertise in the NFT space can be exposed to a wider range of audiences via the support of INO. As such, artists who intend to build NFT projects but are financially challenged to fund the project can raise needed funds through Initial NFT Offerings before creating the projects.
Reduced transaction fees with higher investment returns. Initial NFT Offerings with their unique features allow users to spend less on transactions. Creators and inventors enjoy reduced transaction fees as Initial NFT Offerings help to minimize the transaction fees that these creators and investors are charged. Coupled with the limited transaction fees is the higher investment returns Initial NFT Offerings provide as investors benefit from the inherent supply scarcity of the NFTs.
Alongside the attention geared towards cryptocurrencies, NFTs were also receiving a lot of attention. As the NFT market grows and matures, the financing nature of NFT issuance is turning clear. With Initial NFT Offerings the NFT ecosystem can be revolutionized. INO serves as an innovative solution to resolve the challenges that all participants face. It facilitates NFT liquidity, eases the listing process, avoids compliance risks, and provides an inclusive experience for users.