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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.
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.
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.
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:
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.
A non-fungible token (NFT) is a collectible digital asset that holds value in the form of cryptocurrency as well as in forms of art or culture. NFTs can be used to represent easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items and to establish a verified and public proof of ownership using blockchain technology.
An NFT marketplace is a platform that provides access to all kinds of NFTs and makes them tradable and acquirable to interested investors.
INO, or Initial Non-Fungible Token Offering, is a new type of crowdfunding platform in which the non-fungible tokens are sold at the crowdfunding platform for a stipulated period.
Business models have gained a high quantity of profit from utilizing the fundraising platforms in the past few years. The fundraising models take care of the verification process such as Know Your Customer (KYC) and Anti-Money Laundering activities (AML) for the investors.
Fundraising models have been assisting business entities to reach their target of the maximum amount of funds and minimum amount of funds. These targets allow the business entity to be balanced and enjoy a high yield of profit.
Firstly, INO provides high investment returns as NFT holders experience high investment returns when there is a rise in the trading volume of the NFTs.
Secondly, INOs guarantee fewer transaction costs. Since the crowdfunding platform is developed on a decentralized exchange platform, the transaction cost is less.
In addition, INOs ensure purchasing of NFTs at ease. NFTs are purchased easily as they provide partial ownership to the investor and even a small-scale investor can earn a high profit with less involvement of risks.
Further, INOs provide high investment returns. The NFT holder experiences high investment returns when there is a rise in the trading volume of the NFTs.