2.- WHAT STAGE ARE WE AT? (ICO)
ICO and What We are looking for
In the other video we already talked in a very general way about what Kekuul is. In this video we are going to get a little more technical.
Kekuul's goals are ambitious and we want to reach the next level. In the planning process we had to decide if the first step we wanted to do will be in a traditional way or in a disruptive way but that was also very planned and proven.
We are also very aware that to achieve this we need your help. That's why we decided to create and launch our own Utility Token, the KUULKOIN. This will be through an Initial Coin Offering (ICO)
Surely you are thinking, what a h*** is a Utility Token and an ICO? I'm going to explain it to you in a very general way.
When a project, a company or a startup needs to grow, the most logical thing is that they go out and look for capital. In some cases they request loans, in other cases they offer part of their share capital in exchange for money or when they are already gigantic projects they go public.
Let's say those are great, traditional methods. However, in recent years a new method has emerged. Create a Utility Token and offer it in an Initial Coin Offering or ICO.
A Utility Token is basically a digital currency that is oriented to offer a concrete utility on a platform or application, which gives rights to the use of certain products or services.
In other words it is a digital currency that has a value and certain uses within a platform.
On the other hand, an Initial Coin Offering or ICO arises when people want to launch a new project and for this they offer utility tokens at a preferential price for all users who invest in it prior to the launch.
In that case both parties benefit, on the one hand the company manages to raise more money for the launch and users get great future benefits after the launch, starting with a noticeable increase in the value of each token.
There are huge Initial Coin Offerings, for millions and millions of dollars. This is clearly not the case.
In the following video I will explain in more detail what a token is, the ways to create it, the support they have and the security they have.
- 1.The process begins when the project developer decides to make the call for an ICO.
- 2.In this call, the developer announces the issuance of a certain number of tokens.
- 3.These tokens are the utility tokens and will have a value determined by the company. This with the aim of reaching a specific amount, estimated necessary for the development of your project.
- 4.Generally the price of tokens is static, but it can also be the case where the value can fluctuate depending on demand.
- 5.The purchase of these utility tokens is done in different cryptocurrencies and even with fiat currencies. The interested party in the project pays a certain amount of money for the tokens he wants and they are assigned to him.
- 6.The allocation of purchased tokens is directed to an address under the control of the buyer. In this way, the buyer obtains these utility tokens that in the future can be used to access the services of the project to be developed.
- 7.Normally, the purchase of utility tokens of a successfully completed project ends up generating profits for the buyer. This is because the purchase price of these utility tokens in principle is much lower than the final price that the tokens acquire.
This is especially true if the project ends up reaching its goals or even exceeding them. Hence the great popularity of ICOs and utility tokens throughout this process.
*Check the Whitepaper for any questions.