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Various fundraising techniques are adopted by emerging projects to promote their business. But what is INO? An NFT IPO is a recently launched fundraising technique primarily designed for decentralized platforms. In this Pooyan Music post, we have prepared a guide for you to understand and start working with it.
Approaching the increasing momentum towards the digital world has equally increased the use of digital currencies to a great extent. Therefore, in order to help business entities and start-up platforms raise capital and foster further recognition and attract early investors, a number of fundraising models and crowdfunding projects have been created. These crowdfunding platforms help various business entities to increase profit margins.
Notably, the most popular fundraising model in the crypto space is the Initial Coin Offering (ICO) model. Users of this model reward their investors with a crypto token for funding the platform. Aside from ICOs, other notable fundraising projects include Initial Exchange Offerings (IEOs), Initial Dex Offerings (IDOs), and Initial NFT Offerings (INOs), the latter of which is our main focus in this guide.
The high demand for decentralized platforms has caused the popularity of digital currencies to increase dramatically. Meanwhile, digital assets are recognized in almost all parts of the world. This has created non-fungible tokens. Hence the need for INO, a new cryptocurrency crowdfunding innovation based on the concept of Initial Coin Offerings.
A non-fungible token initial offering is a new type of crowdfunding platform where non-fungible tokens are sold in the early stages of a project for a certain period of time.
A non-fungible token (NFT) is a collectible digital asset that has value in the form of digital currency as well as in the form of digital representation of art such as music or culture. In another post, we have discussed what NFT is and what its uses are.
NFT, it is a digital token that is a variation of digital currency. Its difference is mainly its uniqueness and the fact that it does not allow similar exchanges. This means that you cannot trade NFTs like paper currencies. Trading an NFT with another NFT results in a completely different digital asset at your disposal. NFTs are often backed by a local cryptocurrency.
As mentioned earlier, non-fungible tokens can be in the form of artwork, files, music files, audio or trading cards.
After knowing what INO means, you need to know how it works. The definition of NFT comes with some essentials to choose the best NFT market.
An NFT is a digital representation of an asset on a blockchain for all transactions. Blockchain is primarily known for its various applications in the field of decentralized finance.
One of the popular blockchain platforms for holding NFTs is Ethereum (ETH) alongside the role of other blockchains that support Ethereum transactions.
Creating an NFT involves representing digital objects, either tangible or intangible items. These items can include collectibles, music, video, artwork, GIFs, designer sneakers, and sports highlights, virtual avatars, and video games. Some rarities like tweets are also known in the world of NFTs.
Because of this, it’s easier to think of non-fungible tokens as physical collectibles on their own in the digital space. Instead of getting an actual painting, the buyer can get a digital file with ownership rights. NFTs can have only one owner at a time.
As mentioned earlier, NFTs are gaining widespread adoption. Many new enthusiasts are moving towards the NFT market. This explains the growth of NFTs, thus leading to an increase in the initial supply of NFTs, which provides many advantages to the NFT market. Below are some of them:
Easy setup of NFT projects without special expertise. Initial NFT offerings allow people to easily issue limited copies of NFTs. With the features that come with initial NFT offerings, anyone with little expertise in the NFT space can gain exposure to a wider audience through INO’s support. In this way, artists who intend to create NFT projects but are financially challenged to finance the project can raise the funds they need before creating the projects through NFT Initial Offers.
Lower transaction fees with higher investment returns. NFT’s initial offering with its unique features allows users to pay less for transactions. Creators and inventors benefit from reduced transaction fees. Because NFT IPOs help minimize the transaction fees these creators and investors charge. Along with limited transaction fees is the higher return on investment that NFT initial offerings provide. Because investors benefit from the inherent scarcity of supply of NFTs.
Along with the attention paid to digital currencies, NFTs also received a lot of attention. As the NFT market grows and matures, the nature of NFT issuance financing becomes clear. NFT’s initial offering can revolutionize the NFT ecosystem. INO acts as an innovative solution to the challenges faced by all participants, facilitating NFT liquidity, simplifying the listing process, avoiding compliance risks and providing an immersive user experience.
