Why did we decide to make a TDE instead of an ICO?
ICOs are the usual way to raise funds for a project where a company creates a token (or cryptocurrency), sets an initial price, and offers the tokens to investors and potential users of the company’s product (the community). During the private and pre-sale stages the tokens are offered at an advantageous price to accredited investors. The community can only participate when the ICO starts, in this stage the tokens are offered at full price, usually combined with discounts, bonuses and airdrops. This is all well and good for a company that has a project written on a whitepaper, but if a company builds a product that helps people pay less for all their online purchases, why don’t they let the community decide the initial token price?
A Token Distribution Event (TDE) is a voluntary donation event in which donors have the opportunity to request any amount of available tokens in exchange for their contribution. This strategy allows the community to implicitly set the token price based on the number of tokens requested and the total donated amount. All requested tokens are sent within 72 hours and when the TDE has ended, the token is listed on accredited exchanges where its price will be regulated by the market.
We abandon the ICO model and lean towards a TDE because we want to build a worldwide community that can obtain our tokens at the fairest price possible and without restrictions. We need the help of our community to cover the expenses associated with the project, so that we can continue our mission of providing values that promote privacy, confidence, profitability, choice, and innovation in cyberspace.
You are invited to be part of our community helping us to help you, please visit us at www.valsto.org.
