Our initial token offering (ITO) will be for the TOK Coin, an exchange-utility token.
There are a couple of reasons that an ITO makes sense for our project. First, since we are an exchange aggregator, the ITO can serve as a great marketing tool to get the Tokenplace name out there to potential users who are already participating on crypto exchanges. On top of that, distributing TOK to early investors is a good way to jumpstart some exchange volume for the coin, making it more useful as a liquidity tool in our smart trading engine.
Below are the specifications of the TOK Coin supply and the conditions of the ITO.
Name: TOK Coin
Token standard: ERC20
Initial price: $0.01
Total supply: 250,000,000 TOK
Total tokens for sale: 155,000,000 TOK
Round 1 Private Limited Token Offering
Token for sale: 50,000,000 – 100 000 000 TOK
Token price: $0.01
Total amount to be raised: $500,000 – $1 000,000
Token distribution: March 2020
Token for sale: 155,000,000 – Round 1 TOK
Token price: $0.02
Sell order placed on one or more exchanges
In total, there will be 155,000,000 TOK sold through the investment rounds, representing 60% of the total token supply.
Of the remaining 87,500,000 TOK, 55,000,000 will be withheld from circulation as a reserve. This will play an extremely important role in the Tokenplace trading platform because it will be used to provide liquidity to the users, as described earlier in Section 3.2 . Also note that any tokens which go unsold will be sent to our liquidity reserve.
The complete token distribution can be seen in the figure below.
Additionally, we will always have the option to use revenue in a “buyback and burn” program for TOK, similarly to Binance’s program for their BNB token. This gives us an extra tool for balancing the token economy of the whole project. At the same time, we can use revenue to buy back tokens and add them to our liquidity pool rather than burn them, which we would consider if we believed that such an action would be more beneficial for our users.